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The impact of the economic policy uncertainty and geopolitical risks on tourism demand of Mexico

Author

Listed:
  • Veli YILANCI

    (Çanakkale Onsekiz Mart University, Turkey)

  • Sertaç HOPOĞLU

    (Iskenderun Technical University, Turkey)

  • Hakan ERYÜZLÜ

    (Iskenderun Technical University, Turkey)

Abstract

The aim of this study is to determine the effects of geopolitical risk, representing macropolitical factors that may affect number of inbound tourists, and economic policy uncertainty, representing macro-level events, and exchange rates, on inbound tourists to Mexico over the period January 1996 - December 2018 by using Fourier ARDL and Fourier Toda Yamamoto causality tests. The ARDL analysis showed that inbound tourists to Mexico decrease in the long-run as economic policy uncertainty increases and increase in the long-run as geopolitical risk and real exchange rates increase. Causality tests revealed unidirectional causality running from economic policy uncertainty to inbound tourists.

Suggested Citation

  • Veli YILANCI & Sertaç HOPOĞLU & Hakan ERYÜZLÜ, 2023. "The impact of the economic policy uncertainty and geopolitical risks on tourism demand of Mexico," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(636), A), pages 147-164, Autumn.
    • Handle: RePEc:agr:journl:v:3(636):y:2023:i:3(636):p:147-164
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