The Effect of tourism industry on economic growth: the case of Iran

Economic growth has been one of the quantitative indexes to measurethe rate of economic development, in different countries, and factors affecting on it, are very important. This index is affected from several factors, meanwhile, tourism capacitiessuch as, creating job opportunities, infrastructural development, entry of foreign tourists, increasing demand for domestic commodities, increasing exports andincreasing the possibility of foreign investment,Of the major reasons that should bea special effortin line with economic growth.Recognizingthe superior position of tourism industry, in different patterns of economic development, can be strengthened economic growth.The main goal of this paper reviews the effects ofcapital industry and entry of foreign tourists on economic growth of Iran in a time period between 2991–3119by Autoregressive Distribution Lags approach (ARDL).Estimation results show that, the capital that usedin the tourism sector, has a positive and significant effects on economic growth in Iran.Also entry of foreign tourists,showspositive and significant effects on it.