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Does Country Risk Influence International Tourism? A Dynamic Panel Data Analysis

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  • TIAGO NEVES SEQUEIRA
  • PAULO MAÇÃS NUNES

Abstract

International tourism determinants have been studied in recent research, and focus has been given to estimation of demand equations. Country risk has been somewhat neglected in the analysis. Given adequate controls for price and income, we show that country risk is a robust and significant determinant of tourism specialisation of countries: a 1 per cent increase in country risk causes a 0.2 per cent fall in tourism specialisation. Policy‐makers should be aware of the negative effect country risk has in tourism, as this is seen as one of the most promising sectors for development.

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  • Tiago Neves Sequeira & Paulo Maçãs Nunes, 2008. "Does Country Risk Influence International Tourism? A Dynamic Panel Data Analysis," The Economic Record, The Economic Society of Australia, vol. 84(265), pages 223-236, June.
    • Handle: RePEc:bla:ecorec:v:84:y:2008:i:265:p:223-236
    DOI: 10.1111/j.1475-4932.2008.00464.x
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    6. Ahlfeldt Gabriel M. & Franke Bastian & Maennig Wolfgang, 2015. "Terrorism and International Tourism: The Case of Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(1), pages 3-21, February.
    7. Fateh Habibi & Hossein Abbasinejad, 2011. "Dynamic Panel Data Analysis of European Tourism Demand in Malaysia," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 16(2), pages 27-41, spring.
    8. Smiljana Pivčević & Zvonimir Kuliš & Neven Šerić, 2016. "The pull factors of tourism demand: a panel data analysis for Latin American and Carribean countries," Tourism and Hospitality Industry 24, University of Rijeka, Faculty of Tourism and Hospitality Management.
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    10. Jorge M. Andraz & Nélia M. Norte & Hugo S. Gonçalves, 2016. "Do tourism spillovers matter in regional economic analysis? An application to Portugal," Tourism Economics, , vol. 22(5), pages 939-963, October.

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