This study investigate a long-run relationship and the direction of causality among tourism, foreign direct investment (FDI) and economic growth using Toda-Yamamoto Granger no Causality test for annual data from 1975 to 2013 in Malaysia. The results demonstrate that tourism, FDI and economic growth are cointegrated; on the other hand, a long run relationship can be inferred among these three variables. The results of Granger Causality test imply that FDI caused economic growth and international tourist receipts. Also, there is a bi-directional relationship between FDI and economic growth.
