The Role of Economic Freedom in Tourism Development (Using Panel Vector Auto Regression Approach)

Babaki, Roohollah; Efati, Mahnaz

doi:10.22054/tms.2026.87963.3104

The Role of Economic Freedom in Tourism Development (Using Panel Vector Auto Regression Approach)

Articles in Press

Document Type : Research Paper

Authors

Roohollah Babaki ¹

Mahnaz Efati ²

¹ Assistant Professor, Department of Economics, Faculty of Administrative and Economic Sciences, Bojnourd University, Bojnourd, Iran.

² Master of Science, Economics, Faculty of Administrative and Economic Sciences, Bojnourd University, Bojnourd, Iran

https://doi.org/10.22054/tms.2026.87963.3104

Abstract

The tourism sector is one of the largest and fastest-growing industries globally. Given the significance of the tourism industry, exploring the factors that attract inbound tourism has consistently intrigued researchers. In this context, examining the role of economic freedom in the development of the tourism sector is crucial in the literature. Accordingly, this study aimed to analyze the impact of economic freedom on tourism development in selected member countries of the Organization of the Islamic Conference (OIC) during the period from 2006 to 2020, utilizing the Panel Vector Auto Regression (PVAR) approach. The results indicate that the influence of economic freedom on tourism development is both positive and significant. Therefore, policymakers should prioritize enhancing economic freedom as a strategy to bolster the tourism industry by increasing the inflow of international tourists

Keywords

Economic Freedom

Tourism

Panel Vector Auto Regression (PVAR) Approach

Subjects