Advertisement

Do geopolitical risks matter for inbound tourism?

  • Ender DemirEmail author
  • Giray Gozgor
  • Sudharshan Reddy Paramati
Regular Article
  • 36 Downloads

Abstract

This paper aims to analyze the impact of geopolitical risks measured by a new index of geopolitical risk (GPR) on inbound tourism. For this purpose, we use the fixed-effects and the least squares dummy variable corrected estimations for panel data of 18 countries for the period from 1995 to 2016. We find that geopolitical risks negatively affect inbound tourism. We also implement various robustness checks, such as introducing control variables, considering the lagged effect of the GPR, and utilizing different econometric techniques.

Keywords

Geopolitical risks Inbound tourism Tourism demand Developing economies Panel data estimation techniques 

JEL Classification

F50 Z32 C33 

Notes

References

  1. Antonakakis, N., Gupta, R., Kollias, C., & Papadamou, S. (2017). Geopolitical risks and the oil-stock Nexus over 1899–2016. Finance Research Letters, 23, 165–173.CrossRefGoogle Scholar
  2. Apergis, N., Bonato, M., Gupta, R., & Kyei, C. (2018). Does geopolitical risks predict stock returns and volatility of leading defense companies? Evidence from a nonparametric approach. Defence and Peace Economics, 29(6), 684–696.Google Scholar
  3. Araña, J. E., & León, C. J. (2008). The impact of terrorism on tourism demand. Annals of Tourism Research, 35(2), 299–315.CrossRefGoogle Scholar
  4. Aysan, A. F., Demir, E., Gozgor, G., & Lau, C. K. M. (2019). Effects of the geopolitical risks on Bitcoin returns and volatility. Research in International Business and Finance, 47, 511–518.CrossRefGoogle Scholar
  5. Bilgin, M. H., Gozgor, G., & Karabulut, G. (2018). How do geopolitical risks affect the government investment? An empirical investigation. Defence and Peace Economics.  https://doi.org/10.1080/10242694.2018.1513620.Google Scholar
  6. Bilgin, M. H., Gozgor, G., & Lau, C. K. M. (2017). Institutions and gravity model: The role of political economy and corporate governance. Eurasian Business Review, 7(3), 421–436.CrossRefGoogle Scholar
  7. Bruno, G. S. F. (2005). Estimation and inference in dynamic unbalanced panel data models with a small number of individuals. Stata Journal, 5(4), 473–500.CrossRefGoogle Scholar
  8. Caldara D, Iacoviello M. (2018). Measuring geopolitical risk. Board of Governors of the Federal Reserve Board Working Paper.Google Scholar
  9. Demir, E., & Gozgor, G. (2018). Does economic policy uncertainty affect tourism? Annals of Tourism Research, 69, 15–17.CrossRefGoogle Scholar
  10. Enders, W., Sandler, T., & Parise, G. F. (1992). An econometric analysis of the impact of terrorism on tourism. Kyklos, 45(4), 531–554.CrossRefGoogle Scholar
  11. Ghaderi, Z., Saboori, B., & Khoshkam, M. (2017). Does security matter in tourism demand? Current Issues in Tourism, 20(6), 552–565.CrossRefGoogle Scholar
  12. Gholipour, H. F., Tajaddini, R., & Al-mulali, U. (2014). Does personal freedom influence outbound tourism? Tourism Management, 41, 19–25.CrossRefGoogle Scholar
  13. Gholipour, H. F., Tajaddini, R., & Nguyen, J. (2016). Happiness and inbound tourism. Annals of Tourism Research, 57, 251–253.CrossRefGoogle Scholar
  14. Goh, C. (2012). Exploring impact of climate on tourism demand. Annals of Tourism Research, 39(4), 1859–1883.CrossRefGoogle Scholar
  15. Gozgor, G., & Can, M. (2016). Effects of the product diversification of exports on income at different stages of economic development. Eurasian Business Review, 6(2), 215–235.CrossRefGoogle Scholar
  16. Gozgor, G., & Demir, E. (2018). The effects of economic policy uncertainty on outbound travel expenditures. Journal of Competitiveness, 10(3), 5–15.CrossRefGoogle Scholar
  17. Gozgor, G., Demir, E., & Bilgin, M. H. (2017). The effects of the military in politics on the inbound tourism: Evidence from Turkey. Asia Pacific Journal of Tourism Research, 22(8), 885–893.CrossRefGoogle Scholar
  18. Gupta, R., Gozgor, G., Kaya, H., & Demir, E. (2018). Effects of geopolitical risks on trade flows: Evidence from the gravity model. Eurasian Economic Review.  https://doi.org/10.1007/s40822-018-0118-0.Google Scholar
  19. McCabe, S., & Johnson, S. (2013). The happiness factor in tourism: Subjective well-being and social tourism. Annals of Tourism Research, 41, 42–65.CrossRefGoogle Scholar
  20. Ram, Y., Nawijn, J., & Peeters, P. M. (2013). Happiness and limits to sustainable tourism mobility: A new conceptual model. Journal of Sustainable Tourism, 21(7), 1017–1035.CrossRefGoogle Scholar
  21. Saha, S., Su, J. J., & Campbell, N. (2017). Does political and economic freedom matter for inbound tourism? A cross-national panel data estimation. Journal of Travel Research, 56(2), 221–234.CrossRefGoogle Scholar
  22. Saha, S., & Yap, G. (2014). The moderation effects of political instability and terrorism on tourism development: A cross-country panel analysis. Journal of Travel Research, 53(4), 509–521.CrossRefGoogle Scholar
  23. Song, H., Dwyer, L., Li, G., & Cao, Z. (2012). Tourism economics research: A review and assessment. Annals of Tourism Research, 39(3), 1653–1682.CrossRefGoogle Scholar
  24. Song, H., & Li, G. (2008). Tourism demand modelling and forecasting: A review of recent research. Tourism Management, 29(2), 203–220.CrossRefGoogle Scholar
  25. Tang, C. F. (2018). The impacts of governance and institutions on inbound tourism demand: Evidence from a dynamic panel data study. Asia Pacific Journal of Tourism Research, 23(10), 1000–1007.CrossRefGoogle Scholar
  26. Thompson, A. (2011). Terrorism and tourism in developed versus developing countries. Tourism Economics, 17(3), 693–700.CrossRefGoogle Scholar

Copyright information

© Eurasia Business and Economics Society 2019

Authors and Affiliations

  1. 1.Faculty of TourismIstanbul Medeniyet UniversityIstanbulTurkey
  2. 2.Faculty of Political SciencesIstanbul Medeniyet UniversityIstanbulTurkey
  3. 3.School of BusinessUniversity of DundeeDundeeUK

Personalised recommendations