IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/91996.html
   My bibliography  Save this paper

Contemporary Drivers of Global Tourism: Evidence from Terrorism and Peace Factors

Author

Listed:
  • Asongu, Simplice
  • Nnanna, Joseph
  • Biekpe, Nicholas
  • Acha-Anyi, Paul

Abstract

This study examines the effect of terrorism and peace on tourist destination arrivals using a panel of 163 countries with data for the period 2010 to 2015. The empirical evidence is based on Generalised Method of Moments and Negative Binomial (NB) regressions. Our best estimators are from NB regressions from which the following main findings are established. First, political instability, violent demonstrations and number of homicides negatively affect tourist arrivals while the number of incarcerations positively influences the outcome variable. Second the effects from military expenditure, “armed service personnel” and “security officers and polices” are not positively significant. Managerial implications are discussed.

Suggested Citation

  • Asongu, Simplice & Nnanna, Joseph & Biekpe, Nicholas & Acha-Anyi, Paul, 2018. "Contemporary Drivers of Global Tourism: Evidence from Terrorism and Peace Factors," MPRA Paper 91996, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91996
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/91996/1/MPRA_paper_91996.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vanessa S. Tchamyou & Simplice A. Asongu, 2017. "Information Sharing and Financial Sector Development in Africa," Journal of African Business, Taylor & Francis Journals, vol. 18(1), pages 24-49, January.
    2. Vanessa Simen Tchamyou, 2020. "Education, lifelong learning, inequality and financial access: evidence from African countries," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 7-25, January.
    3. Boateng, Agyenim & Asongu, Simplice & Akamavi, Raphael & Tchamyou, Vanessa, 2018. "Information asymmetry and market power in the African banking industry," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 69-83.
    4. Montfort Mlachila & René Tapsoba & Sampawende J. A. Tapsoba, 2017. "A Quality of Growth Index for Developing Countries: A Proposal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 675-710, November.
    5. Seung-Whan Choi, 2015. "Economic growth and terrorism: domestic, international, and suicide," Oxford Economic Papers, Oxford University Press, vol. 67(1), pages 157-181.
    6. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The Mobile Phone in the Diffusion of Knowledge for Institutional Quality in Sub-Saharan Africa," World Development, Elsevier, vol. 86(C), pages 133-147.
    7. Augustin Kwasi Fosu, 2013. "Growth of African Economies: Productivity, Policy Syndromes and the Importance of Institutions," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 523-551, August.
    8. Narayan, Paresh Kumar & Mishra, Sagarika & Narayan, Seema, 2011. "Do market capitalization and stocks traded converge? New global evidence," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2771-2781, October.
    9. Raza, Syed Ali & Jawaid, Syed Tehseen, 2013. "Terrorism and tourism: A conjunction and ramification in Pakistan," Economic Modelling, Elsevier, vol. 33(C), pages 65-70.
    10. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2003. "Law and finance: why does legal origin matter?," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 653-675, December.
    11. Goel, Sanjay & Cagle, Seth & Shawky, Hany, 2017. "How vulnerable are international financial markets to terrorism? An empirical study based on terrorist incidents worldwide," Journal of Financial Stability, Elsevier, vol. 33(C), pages 120-132.
    12. Simplice A. Asongu, 2017. "Knowledge Economy Gaps, Policy Syndromes, and Catch-Up Strategies: Fresh South Korean Lessons to Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 211-253, March.
    13. Thomas Fullerton & Adam Walke, 2014. "Homicides, exchange rates, and northern border retail activity in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 631-647, November.
    14. Asongu, Simplice & Acha-Anyi, Paul, 2017. "The Murder Epidemic: A Global Comparative Study," MPRA Paper 85486, University Library of Munich, Germany, revised Jan 2018.
    15. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    16. Simplice A Asongu & Lieven De Moor, 2017. "Financial Globalisation Dynamic Thresholds for Financial Development: Evidence from Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(1), pages 192-212, January.
    17. Stephen Bond & Anke Hoeffler, 2001. "GMM Estimation of Empirical Growth Models," Economics Series Working Papers 2001-W21, University of Oxford, Department of Economics.
    18. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    19. Asongu, Simplice A. & Biekpe, Nicholas, 2018. "ICT, information asymmetry and market power in African banking industry," Research in International Business and Finance, Elsevier, vol. 44(C), pages 518-531.
    20. Lepp, Andrew & Gibson, Heather & Lane, Charles, 2011. "Image and perceived risk: A study of Uganda and its official tourism website," Tourism Management, Elsevier, vol. 32(3), pages 675-684.
    21. Eric Neumayer & Thomas Plümper, 2016. "Spatial spill-overs from terrorism on tourism: Western victims in Islamic destination countries," Public Choice, Springer, vol. 169(3), pages 195-206, December.
    22. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    23. Tchamyou, Vanessa S. & Erreygers, Guido & Cassimon, Danny, 2019. "Inequality, ICT and financial access in Africa," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 169-184.
    24. Mehmet Yaya, 2009. "Terrorism And Tourism: The Case Of Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(6), pages 477-497.
    25. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Revolution empirics: predicting the Arab Spring," Empirical Economics, Springer, vol. 51(2), pages 439-482, September.
    26. Kapuściński, Grzegorz & Richards, Barry, 2016. "News framing effects on destination risk perception," Tourism Management, Elsevier, vol. 57(C), pages 234-244.
    27. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Foreign aid and governance in Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 69-88, January.
    28. Alvarez, Maria D. & Campo, Sara, 2014. "The influence of political conflicts on country image and intention to visit: A study of Israel's image," Tourism Management, Elsevier, vol. 40(C), pages 70-78.
    29. Seabra, Cláudia & Dolnicar, Sara & Abrantes, José Luís & Kastenholz, Elisabeth, 2013. "Heterogeneity in risk and safety perceptions of international tourists," Tourism Management, Elsevier, vol. 36(C), pages 502-510.
    30. Rafael Llorca-Vivero, 2008. "Terrorism And International Tourism: New Evidence," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(2), pages 169-188.
    31. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    32. Derica Lambrechts & Lars B. Blomquist, 2017. "Political–security risk in the oil and gas industry: the impact of terrorism on risk management and mitigation," Journal of Risk Research, Taylor & Francis Journals, vol. 20(10), pages 1320-1337, October.
    33. Vanessa S. Tchamyou, 2019. "The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality," Journal of African Business, Taylor & Francis Journals, vol. 20(3), pages 317-338, July.
    34. Liu, Anyu & Pratt, Stephen, 2017. "Tourism's vulnerability and resilience to terrorism," Tourism Management, Elsevier, vol. 60(C), pages 404-417.
    35. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The role of governance in mobile phones for inclusive human development in Sub-Saharan Africa," Technovation, Elsevier, vol. 55, pages 1-13.
    36. Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001. "GMM Estimation of Empirical Growth Models," Economics Papers 2001-W21, Economics Group, Nuffield College, University of Oxford.
    37. Mehmood, Shafaqat & Ahmad, Zahid & Khan, Ather Azim, 2016. "Dynamic relationships between tourist arrivals, immigrants, and crimes in the United States," Tourism Management, Elsevier, vol. 54(C), pages 383-392.
    38. Apergis, Emmanuel & Apergis, Nicholas, 2016. "The 11/13 Paris terrorist attacks and stock prices: The case of the international defense industry," Finance Research Letters, Elsevier, vol. 17(C), pages 186-192.
    39. Farmaki, Anna & Altinay, Levent & Botterill, David & Hilke, Sarina, 2015. "Politics and sustainable tourism: The case of Cyprus," Tourism Management, Elsevier, vol. 47(C), pages 178-190.
    40. Badi H. Baltagi, 2008. "Forecasting with panel data," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 27(2), pages 153-173.
    41. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    42. Causevic, Senija & Lynch, Paul, 2013. "Political (in)stability and its influence on tourism development," Tourism Management, Elsevier, vol. 34(C), pages 145-157.
    43. Seung-Whan Choi & Shali Luo, 2013. "Economic Sanctions, Poverty, and International Terrorism: An Empirical Analysis," International Interactions, Taylor & Francis Journals, vol. 39(2), pages 217-245, April.
    44. Yeeles, Adam & Akporiaye, Alero, 2016. "Risk and resilience in the Nigerian oil sector: The economic effects of pipeline sabotage and theft," Energy Policy, Elsevier, vol. 88(C), pages 187-196.
    45. Augustin Kwasi Fosu, 2013. "Growth of African Economies: Productivity, Policy Syndromes and the Importance of Institutions," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 22(4), pages 523-551, August.
    46. Enders, Walter & Sandler, Todd & Parise, Gerald F, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-554.
    47. Imtiaz Arif & Tahir Suleman, 2017. "Terrorism and Stock Market Linkages: An Empirical Study from a Front-line State," Global Business Review, International Management Institute, vol. 18(2), pages 365-378, April.
    48. Manelici, Isabela, 2017. "Terrorism and the value of proximity to public transportation: Evidence from the 2005 London bombings," Journal of Urban Economics, Elsevier, vol. 102(C), pages 52-75.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "The Mobile Phone, Information Sharing, and Financial Sector Development in Africa: a Quantile Regression Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 1234-1269, September.
    2. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2019. "Tourism and insecurity in the world," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 66(4), pages 453-472, December.
    3. Simplice A. Asongu & Joseph Nnanna, 2019. "Dynamic Determinants of Access to Weapons: Global Evidence," Foreign Trade Review, , vol. 54(4), pages 334-354, November.
    4. Simplice A. Asongu, 2019. "The persistence of global terrorism," Working Papers of the African Governance and Development Institute. 19/053, African Governance and Development Institute..
    5. Simplice A. Asongu & Joseph Nnanna, 2019. "Determinants of Access to Weapons: Global Evidence," Working Papers 19/008, European Xtramile Centre of African Studies (EXCAS).
    6. Alola, Andrew & Asongu, Simplice & Alola, Uju, 2019. "House prices and tourism development in Cyprus: A contemporary perspective," MPRA Paper 101795, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asongu, Simplice & Odhiambo, Nicholas, 2019. "The sustainability of tourism: global comparative evidence," MPRA Paper 102057, University Library of Munich, Germany.
    2. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2020. "Drivers and persistence of death in conflicts: global evidence," Working Papers 20/066, European Xtramile Centre of African Studies (EXCAS).
    3. Asongu, Simplice & Acha-Anyi, Paul, 2019. "Global Tourism and Waves of Terror: Perspectives from Military Expenditure," MPRA Paper 101793, University Library of Munich, Germany.
    4. Asongu, Simplice & le Roux, Sara & Nwachukwu, Jacinta & Pyke, Chris, 2018. "The Mobile Phone as an Argument for Good Governance in Sub-Saharan Africa," MPRA Paper 89364, University Library of Munich, Germany.
    5. Simplice A. Asongu, 2018. "Comparative sustainable development in sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(6), pages 638-651, November.
    6. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Enhancing ICT for insurance in Africa," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 9(2), pages 16-27.
    7. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2019. "Tourism and insecurity in the world," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 66(4), pages 453-472, December.
    8. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2019. "The Persistence of Weapons: Global Evidence," Working Papers 19/068, European Xtramile Centre of African Studies (EXCAS).
    9. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2019. "Remittances, finance and industrialisation in Africa," Journal of Multinational Financial Management, Elsevier, vol. 49(C), pages 54-66.
    10. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "How enhancing information and communication technology has affected inequality in Africa for sustainable development: An empirical investigation," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(4), pages 647-656, July.
    11. Asongu, Simplice & Uduji, Joseph & Okolo-Obasi, Elda, 2020. "Political instability and political terror: global evidence on persistence," MPRA Paper 103147, University Library of Munich, Germany.
    12. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Insurance and Inequality in Sub-Saharan Africa: Policy Thresholds," Working Papers of the African Governance and Development Institute. 20/005, African Governance and Development Institute..
    13. Asongu, Simplice A. & Nwachukwu, Jacinta C. & Orim, Stella-Maris I., 2018. "Mobile phones, institutional quality and entrepreneurship in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 183-203.
    14. Simplice Asongu & Christelle Meniago, 2018. "Technology and persistence in global software piracy," Netnomics, Springer, vol. 19(1), pages 43-63, October.
    15. Asongu, Simplice & Odhiambo, Nicholas, 2019. "Foreign Aid Complementarities and Inclusive Human Development in Africa," MPRA Paper 101086, University Library of Munich, Germany.
    16. Asongu, Simplice, 2019. "The persistence of global terrorism," MPRA Paper 101536, University Library of Munich, Germany.
    17. Simplice A. Asongu & Joseph Nnanna, 2019. "Dynamic Determinants of Access to Weapons: Global Evidence," Foreign Trade Review, , vol. 54(4), pages 334-354, November.
    18. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(1), pages 71-103, February.
    19. Simplice A. Asongu & Joseph Amankwah‐Amoah & Rexon T. Nting & Godfred Adjapong Afrifa, 2021. "Information Technology and Gender Economic Inclusion in Sub-Saharan Africa," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 24(2), pages 120-133, April.
    20. Simplice A. Asongu & Joseph Nnanna, 2021. "Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds," Working Papers 21/015, European Xtramile Centre of African Studies (EXCAS).

    More about this item

    Keywords

    Terrorism; Peace; Tourism; Generalised Method of Moments; Negative Binomial Regressions; Military expenditure; Armed service personnel; Security officers and polices; Drivers and Panel data;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:91996. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.