IDEAS home Printed from https://ideas.repec.org/a/sae/fbbsrw/v9y2020i4p300-308.html
   My bibliography  Save this article

Terrorism–Tourism–Economic Growth Nexus in India: An NARDL Evidence

Author

Listed:
  • Santhosh Kumar P. K.
  • Sanjeev M. A.

Abstract

Some of the major tourist destinations in India are also reeling under terror. This study examines the causal relationship between terrorism and tourism and economy impact in the Indian states of Jammu and Kashmir, Assam and Manipur using the asymmetric nonlinear autoregressive-distributed lag (NARDL) approach. The study is an attempt to investigate the ‘tourism–terrorism–economy’ relationship which has hitherto been not widely studied. The estimates based on the Granger causality approach demonstrate that there is causality among terrorism, tourism and economic growth (proxied by state gross domestic products—SGDP) in the short run for all the three study states. The results indicate positive relation between SGDP and tourism in all the three states and between SGDP and terrorism in Assam and Manipur. However, the relation between SGDP and terrorism is negative for Jammu and Kashmir. The results indicate that the relation between the three study variables is highly contextual and cannot be generalized across tourist destinations.

Suggested Citation

  • Santhosh Kumar P. K. & Sanjeev M. A., 2020. "Terrorism–Tourism–Economic Growth Nexus in India: An NARDL Evidence," FIIB Business Review, , vol. 9(4), pages 300-308, December.
    • Handle: RePEc:sae:fbbsrw:v:9:y:2020:i:4:p:300-308
    DOI: 10.1177/2319714520965281
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2319714520965281
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2319714520965281?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thomas Gries & Tim Krieger & Daniel Meierrieks, 2011. "Causal Linkages Between Domestic Terrorism and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 493-508, June.
    2. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    3. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, vol. 34(7), pages 877-884.
    4. Isabel Cortés-Jiménez & Manuela Pulina & Carme Riera i Prunera & Manuel Artís, 2009. "Tourism and Exports as a means of Growth," IREA Working Papers 200910, University of Barcelona, Research Institute of Applied Economics, revised May 2009.
    5. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    6. Konstantinos Drakos & Ali M. Kutan, 2003. "Regional Effects of Terrorism on Tourism in Three Mediterranean Countries," Journal of Conflict Resolution, Peace Science Society (International), vol. 47(5), pages 621-641, October.
    7. Nikolaos Dritsakis, 2004. "Tourism as a Long-Run Economic Growth Factor: An Empirical Investigation for Greece Using Causality Analysis," Tourism Economics, , vol. 10(3), pages 305-316, September.
    8. Sultan Mehmood, 2014. "Terrorism and the macroeconomy: Evidence from Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(5), pages 509-534, October.
    9. P. Srinivasan & Santhosh Kumar P. K & L. Ganesh, 2012. "Tourism and Economic Growth in Sri Lanka: An ARDL Bounds Testing Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(45), pages 211-226, September.
    10. Lokman Gunduz & Abdulnasser Hatemi-J, 2005. "Is the tourism-led growth hypothesis valid for Turkey?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(8), pages 499-504.
    11. Khusrav Gaibulloev & Todd Sandler, 2009. "The Impact Of Terrorism And Conflicts On Growth In Asia," Economics and Politics, Wiley Blackwell, vol. 21(3), pages 359-383, November.
    12. Corbet, Shaen & O’Connell, John F. & Efthymiou, Marina & Guiomard, Cathal & Lucey, Brian, 2019. "The impact of terrorism on European tourism," Annals of Tourism Research, Elsevier, vol. 75(C), pages 1-17.
    13. Assaker, Guy & Vinzi, Vincenzo Esposito & O’Connor, Peter, 2011. "Examining the effect of novelty seeking, satisfaction, and destination image on tourists’ return pattern: A two factor, non-linear latent growth model," Tourism Management, Elsevier, vol. 32(4), pages 890-901.
    14. Robin C. Sickles & William C. Horrace (ed.), 2014. "Festschrift in Honor of Peter Schmidt," Springer Books, Springer, edition 127, number 978-1-4899-8008-3, June.
    15. Shahbaz, Muhammad, 2013. "Linkages between inflation, economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 32(C), pages 496-506.
    Full references (including those not matched with items on IDEAS)

    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. Muhammad Shahbaz & Ramzi Benkraiem & Anthony Miloudi & Aviral Kumar Tiwari, 2019. "Tourism-induced financial development in Malaysia: New evidence from the tourism development index," Tourism Economics, , vol. 25(5), pages 757-778, August.
    2. Ceyhun Can OZCAN & Murat ASLAN & Saban NAZLIOGLU, 2017. "Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(611), S), pages 75-98, Summer.
    3. Shahbaz, Muhammad & Kumar, Ronald Ravinesh & Ivanov, Stanislav & Loganathan, Nanthakumar, 2015. "Nexus between Tourism demand and output per capita with relative importance of trade and financial development: A study of Malaysia," MPRA Paper 67226, University Library of Munich, Germany, revised 11 Oct 2015.
    4. Muhammad Tariq Majeed & Maria Mazhar, 2021. "Managing economic growth through tourism: Does volatility of tourism matter?," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(1), pages 49-69, March.
    5. Tang, Chor Foon, 2011. "Tourism, real output and real effective exchange rate in Malaysia: a view from rolling sub-samples," MPRA Paper 29379, University Library of Munich, Germany.
    6. Kasimati Evangelia, 2016. "Does tourism contribute significantly to the Greek economy? A multiplier analysis," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 7(1), pages 55-62, May.
    7. Olena STRYZHAK & Ramazan SAYAR & Yılmaz Onur ARI, 2022. "Geopolitical risks, GDP and tourism: an ARDL-ECM cointegration study on Ukraine," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 14(1), pages 85-113, May.
    8. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    9. Yong Su & Jacob Cherian & Muhammad Safdar Sial & Alina Badulescu & Phung Anh Thu & Daniel Badulescu & Sarminah Samad, 2021. "Does Tourism Affect Economic Growth of China? A Panel Granger Causality Approach," Sustainability, MDPI, vol. 13(3), pages 1-12, January.
    10. Yang Songling & Muhammad Ishtiaq & Bui Thi Thanh, 2019. "Tourism Industry and Economic Growth Nexus in Beijing, China," Economies, MDPI, vol. 7(1), pages 1-15, March.
    11. Shahbaz, Muhammad & Shabbir, Muhammad Shahbaz & Malik, Muhammad Nasir & Wolters, Mark Edward, 2013. "An analysis of a causal relationship between economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 35(C), pages 21-29.
    12. Mohammad Jaforullah, 2015. "International tourism and economic growth in New Zealand," Working Papers 1502, University of Otago, Department of Economics, revised Apr 2015.
    13. Katircioglu, Salih & Eminer, Fehiman & Aga, Mehmet & Ozyigit, Ahmet, 2010. "Trade and Growth in the Pacific Islands - Empirical Evidence from the Bounds Test to Level Relationships and Granger Causality Tests," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 88-101, December.
    14. Isabel Cortes-Jimenez & Manuela Pulina, 2006. "Tourism and Growth: Evidence for Spain and Italy," ERSA conference papers ersa06p128, European Regional Science Association.
    15. 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.
    16. Jayaraman, Tiru & Choong, Chee-Keong & Fatt Ng, Cheong & Bhatt, Markand, 2017. "Tourism-Growth Nexus in the South Pacific Islands: Role of Financial Sector Development as a Contingent Factor An Empirical Study of Fiji: 1980-2014," MPRA Paper 79461, University Library of Munich, Germany.
    17. Akhil Sharma & Tarun Vashishat & Abdul Rishad, 2019. "The consequences of exchange rate trends on international tourism demand: evidence from India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 270-287, December.
    18. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Nikeel Kumar & Syed Jawad Hussain Shahzad, 2019. "Exploring the effect of ICT and tourism on economic growth: a study of Israel," Economic Change and Restructuring, Springer, vol. 52(3), pages 221-254, August.
    19. Sana Naseem, 2021. "The Role of Tourism in Economic Growth: Empirical Evidence from Saudi Arabia," Economies, MDPI, vol. 9(3), pages 1-12, August.
    20. Bouzahzah, Mohamed & El Menyari, Younesse, 2013. "The relationship between international tourism and economic growth: the case of Morocco and Tunisia," MPRA Paper 44102, University Library of Munich, Germany.

    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:sae:fbbsrw:v:9:y:2020:i:4:p:300-308. 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: SAGE Publications (email available below). General contact details of provider: .

    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.