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Impact of Terrorism on Tourism in India

Author

Listed:
  • Yashobanta Parida

    (Jawaharlal Nehru University & Institute of Economic Growth)

  • Parul Bhardwaj

    (University of Delhi & Institute of Economic Growth)

  • Joyita Roy Chowdhury

    (Department of Economics, University of Utah, USA)

Abstract

This present study empirically examines the impact of terrorism activities on inbound tourism and foreign exchange earnings from tourism in India using annual data covering period 1980-2011. The empirical estimates based on an ARDL approach show that, there exists an inverse relation between terrorism activity and foreign tourist arrival in India. Similarly, there exists a positive relationship between economic development (proxied by per capita income) and tourist arrival in India. For robustness check we have included physical development indicators such as fixed telephone subscriptions (per 100 people) and railway line (total route-km). Railway infrastructure shows a positive and significant impact on foreign tourist arrivals and foreign exchange earnings in India.The findings of the study suggest that, Government should invest more in the tourism sector, which would help in generating more employment and foreign exchange earnings. Further, the empirical results also suggest that the measures adopted by the Government of India such as bringing 150 countries under the ambit of Visa-On-Arrival as well as increasing FDI in the sector will go a long way in stepping up inbound tourist arrivals and consequently boosting foreign exchange earnings as well. Additionally, the Government must also work to improve the tourism infrastructure and provide a greater sense of security for tourists, particularly women, among other things.

Suggested Citation

  • Yashobanta Parida & Parul Bhardwaj & Joyita Roy Chowdhury, 2015. "Impact of Terrorism on Tourism in India," Economics Bulletin, AccessEcon, vol. 35(4), pages 2543-2557.
    • Handle: RePEc:ebl:ecbull:eb-15-00592
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I4-P256.pdf
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    References listed on IDEAS

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    6. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kateryna Horiachko, 2020. "Research of the impact of the terrorism and other factors on the consumers behavior," Technium Social Sciences Journal, Technium Science, vol. 7(1), pages 139-148, May.
    2. Syed Abdul Rehman Khan & Danish Iqbal Godil & Zhang Yu & Farwa Abbas & Muhammad Asif Shamim, 2022. "Adoption of renewable energy sources, low‐carbon initiatives, and advanced logistical infrastructure—an step toward integrated global progress," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 275-288, February.
    3. repec:thr:techub:1007:y:2020:i:1:p:139-148 is not listed on IDEAS
    4. Kai-Cheng Liao & Ming-Yue Yue & Si-Wei Sun & Hong-Bo Xue & Wei Liu & Sang-Bing Tsai & Jiang-Tao Wang, 2018. "An Evaluation of Coupling Coordination between Tourism and Finance," Sustainability, MDPI, vol. 10(7), pages 1-23, July.

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    More about this item

    Keywords

    Terrorism; Tourism; ARDL Model; India;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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