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Inbound tourism demand elasticities of MENA countries: the role of internal and external conflicts

Author

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  • Ojonugwa Usman
  • Andrew Adewale Alola
  • George Ike

Abstract

Purpose - In this paper, the authors investigate the inbound tourism demand elasticities of the Middle East and North African (MENA) countries. The authors emphasize the role of external and internal conflicts, world gross domestic product and relative prices over the period 1995–2017. Design/methodology/approach - This study applies the heterogeneous panel data estimators based on the fully modified-OLS (FM-OLS), dynamic-OLS (DOLS) and the recently developed method of moments quantile regression (MMQR). Findings - The empirical results indicate that the effect of external and internal conflicts on inbound tourism demand is negative and inelastic with external conflict having a stronger effect. The effect of both classifications of conflicts diminishes as the market share of the tourist destination increases. In addition, the role of the world GDP on tourism demand is positive and elastic, suggesting that tourism is a luxury good while an increase in relative prices diminishes inbound tourism demand. Originality/value - The paper, therefore, concludes that if policy measures are not put in place to curtail incidences of conflicts, economic growth in these countries may suffer setbacks. This by implications could affect the attainment of the sustainable development goals (SDGs) targets.

Suggested Citation

  • Ojonugwa Usman & Andrew Adewale Alola & George Ike, 2022. "Inbound tourism demand elasticities of MENA countries: the role of internal and external conflicts," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 18(10), pages 4690-4706, February.
    • Handle: RePEc:eme:ijoemp:ijoem-04-2021-0650
    DOI: 10.1108/IJOEM-04-2021-0650
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    More about this item

    Keywords

    External and internal conflicts; Tourism demand; MMQR; MENA region; C22; L83; Z32;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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