Abstract
We use the sample from 1978 to 2014 for the paper (doi:10.1016/j.tmp.2016.05.005). The data on GDP at constant 2005 USD (US dollar), and the gross fixed capital formation at constant 2005 USD are extracted from the World Bank (2015). The labour stock which includes direct and indirect employment and the tourism receipts (in USD) are sourced from the Sri Lanka Tourism Development Authority (http://www.sltda.lk/statistics). Tourism receipts as a per cent of GDP is used to measure tourism demand. The capital stock data is computed using perpetual inventory method, where a depreciation rate of 8 per cent is assumed with the initial capital stock as 1.05 times the GDP of 1969 at constant 2005 USD. The output per worker and capital per worker is computed by dividing the GDP and capital stock by the labour stock, respectively.