Abstract
This paper aims to investigate a positive inter-relationship between tourism, trade, infrastructure and economic growth. Through number of literature examine bilateral relationship between the variables; the literature has certified that tourism is the one of the key factor in trade and economic growth as well as trade is the key factors of tourism and economic growth. Furthermore, the literature found that infrastructure has a strong correlation between tourism, trade and economic growth. The results were mixed, some study found bidirectional and unidirectional relationship in bilateral model between tourism, trade, infrastructure and economic growth. Nevertheless, few studies carried out in term of analyzing the dynamic relationship between these four variables in Malaysia. In order to fill the gaping hole, the study analyzes the dynamic relationship between tourism, trade, infrastructure and economic growth in Malaysia. Therefore, the study used cointegration and granger causality tests to estimate the causal relationships between trade, tourism, infrastructure and economic growth in Malaysia using an annual data from 1999 to 2010. Findings show that trade has a significant impact in the long run on the economic performance of Malaysia. In the short run, statistical results show that there are causal relationships between trade, tourism, infrastructure and economic growth. The present results support growth-led tourism, tourism-led infrastructure, trade and economic growth, trade-led growth, tourism and infrastructure as well as infrastructure - led growth and infrastructure development in the short run. Overall, this study indicates that tourism, trade, infrastructure and economic growth interact and reinforce each other either directly or indirectly.
Keywords: Economic growth, trade, tourism, infrastructure and Malaysia.
