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Does violent crime scare tourists away? Panel data evidence from 32 mexican states

Author

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  • Nicolas Corona

    (Universidad de las Americas Puebla)

Abstract

The scaling up of violent crime in Mexico is often characterized as detrimental to the Mexican tourism industry. However, no econometric study so far challenges this claim with data. This paper therefore empirically analyzes the impact of crime on the arrivals of tourists in Mexico for the period 1990 to 2010. Using a panel data set for the 31 Mexican federal states and Mexico City, I find a negative and significant effect of homicides on the number of tourists arriving. This finding is robust to alternative estimation techniques and samples. Furthermore, when disaggregating the tourist arrival data into local and international, I find that international tourists seem to be more intimidated from homicides than locals. Classification-JEL: C33, C36, O17, O54.

Suggested Citation

  • Nicolas Corona, 2018. "Does violent crime scare tourists away? Panel data evidence from 32 mexican states," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 15(2), pages 21-48, Julio-Dic.
    • Handle: RePEc:qua:journl:v:15:y:2018:i:2:p:21-48
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    File URL: http://econoquantum.cucea.udg.mx/index.php/EQ/article/view/7127
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    File URL: http://econoquantum.cucea.udg.mx/index.php/EQ/issue/view/694
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    More about this item

    Keywords

    Violent crime; tourist arrivals; panel data.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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