Tourism Receipts, Employment, and Infrastructure: Drivers of Brazil’s Economic Growth

Abstract

Tourism has become a major driver of global economic growth, which provides opportunities for income diversification, job creation, and foreign exchange earnings, and in the process, it is helping to strengthen sustainability when adequate governance and environmental protective measures are in place in the sector. This investigation probes the long-run economic ramifications of Tourism within Brazil through scrutinizing the influence of tourism receipts, sectoral employment, infrastructural investment role, political stability, and ecological sustainability. Anchored in endogenous growth theory, the empirical analysis uses the autoregressive distributed lag bounds-testing procedure along with a vector error correction model in order to capture the dynamics of the short-run and the permanent equilibrium linkages. Utilizing time series data obtained from the year-round World Bank how the findings, the study on the continuity of the selected variables supports and proves tourism is a vital contributor effect on the national output. Tourism receipts and tourism sectors ' employment are found to have strong positive effects on growth in the short run, while political stability and environmental sustainability have a stronger influence on long-run growth in the market. These results highlight the fact that tourism works not only as a fountain for immediate economic gains but as a productive input that enhances the total factor productivity and broadens fiscal capacity and steers the path of structural transformation contingent on the interventions of good governance and sustainability. The study concludes that the optimal way for Brazil to leverage its available tourism potential-led growth is via a combination of policies that could broaden tourism activities, as well as long-term strategies that prioritize institutional quality, infrastructural area development, or environmental management.