Abstract:
Exchange rate plays an active and significant role in attracting tourist and in increasing GDP. The rate of exchange is stated as value of a currency that has the aim of exchange to other currency. It plays a vital role in an economy by appreciating and depreciating. Taking it into the account the importance of exchange rate the study has been conducted in which the impact of exchange rate seen on International Tourism and Pakistan’s Economy. To estimate the long run relationship between the variables the Augmented Dickey Fuller Test (ADF), Bound Test and Autoregressive Distributed Lag (ARDL), these approaches has been applied. The secondary from 1999-2018 of Pakistan’s have been used for data analysis. The study found the evidences that the exchange rate has positive impact on tourist arrival and GDP and has negative relation with tourist receipts. The study is limited to constraints. This enlighten the future entrants to research.
