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War economy and pleasure: assessing the effects of military expenditure on tourism growth

Author

Listed:
  • Abdelmohsen A. Nassani

    (King Saud University)

  • Khalid Zaman

    (Abbottabad University of Science and Technology)

  • Abdullah Mohammed Aldakhil

    (King Saud University)

  • Muhammad Moinuddin Qazi Abro

    (King Saud University)

Abstract

The objective of this study is to examine the relationship between military factors and international tourism indicators in the panel of 18 tourists and non tourists-oriented countries, over the period of 1995–2014. The results are robust by using the several panels econometric techniques including Hausman test for model specifications, panel random effect model and panel generalized method of moments estimations. The results show that arms export and military expenditures both significantly correlated with the international tourism indicators, while per capita GDP increases international tourism expenditures and it decreases international tourism receipts. The gross fixed capital formation and health care expenditures increase international tourism indicators while the incidence of tuberculosis affected the international tourism receipts in the region. Energy intensity although supports the international tourism growth, however, it does not uphold the international tourism receipts. The results confirm the bidirectional causality between international tourism indicators and domestic investment (and healthcare expenditures), while there is a unidirectional causality running from international tourism expenditures to arms export, from tourism expenditures to military spending, and from tourism growth to per capita income. The tourism led growth hypothesis and tourism induced military expenditures calls for the desirable policy attention in the region.

Suggested Citation

  • Abdelmohsen A. Nassani & Khalid Zaman & Abdullah Mohammed Aldakhil & Muhammad Moinuddin Qazi Abro, 2017. "War economy and pleasure: assessing the effects of military expenditure on tourism growth," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1733-1754, July.
    • Handle: RePEc:spr:qualqt:v:51:y:2017:i:4:d:10.1007_s11135-016-0362-x
    DOI: 10.1007/s11135-016-0362-x
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    Cited by:

    1. Asongu, Simplice A & Odhiambo, Nicholas M, 2023. "Military Expenditure, Policy Syndromes and Tourism in the World," Working Papers 30041, University of South Africa, Department of Economics.
    2. Luke Emeka Okafor & Usman Khalid, 2021. "Regaining international tourism attractiveness after an armed conflict: the role of security spending," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(3), pages 385-402, February.
    3. Ilhan Ozturk & Arshian Sharif & Danish Iqbal Godil & Adnan Yousuf & Iram Tahir, 2023. "The Dynamic Nexus Between International Tourism and Environmental Degradation in Top Twenty Tourist Destinations: New Insights From Quantile-on-Quantile Approach," Evaluation Review, , vol. 47(3), pages 532-562, June.
    4. Muhammad Athar Nadeem & Zhiying Liu & Yi Xu & Kishwar Nawaz & Muhammad Yousaf Malik & Amna Younis, 2020. "Impacts of terrorism, governance structure, military expenditures and infrastructures upon tourism: empirical evidence from an emerging economy," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 185-206, March.
    5. Usman Khalid & Luke Emeka Okafor & Nusrate Aziz, 2020. "Armed conflict, military expenditure and international tourism," Tourism Economics, , vol. 26(4), pages 555-577, June.
    6. Choudhary, Sheraz Ahmad & Khan, Muhammad Azhar & Sheikh, Abdullah Zafar & Jabor, Mohd Khata & Nordin, Mohd Safarin bin & Nassani, Abdelmohsen A. & Alotaibi, Saad M. & Abro, Muhammad Moinuddin Qazi & V, 2020. "Role of information and communication technologies on the war against terrorism and on the development of tourism: Evidence from a panel of 28 countries," Technology in Society, Elsevier, vol. 62(C).

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