This project analysed the impact of political instability and corruption on tourism demand using recent cross-sectional data from over one hundred countries.
Tourism is a growing global industry that generates foreign earnings for most of the countries in this study. In particular, for the developing countries, tourism is one of the most important sectors, providing a source of tax revenue, which could potentially alleviate poverty.
Despite the benefits of economic growth, the tourism industry can be easily deteriorated by political and social unrest. This study examined the effects of this on tourism demand.
- Does political instability and terrorism have negative effects on tourism demand and economic growth?
- Panel estimation technique.