| By: |
Simplice A. Asongu (Yaoundé/Cameroon);
Paul N. Acha-Anyi (Walter Sisulu University, South Africa) |
| Abstract: |
This study complements existing literature by investigating how military
expenditure can modulate the effect of terrorism externalities on tourism. The
geographical and temporal scopes are 163 countries and the period 2010-2015.
The empirical evidence is based on negative binomial regressions. Terrorism
externalities are measured in terms of terror-related incidents, injuries,
fatalities and damaged properties. We find that military expenditure
significantly lessens the destructive impact of these terror-related incidents
in order to induce positive net effects on tourism. This finding is robust to
all measurements of terrorism. Homicides and violent demonstrations reduce
tourists’ arrivals whereas the rate of incarceration of convicted offenders
has the opposite effect. The analysis is extended to income levels and regions
in order to provide more opportunities for policy implications. Justifications
for differences in these comparative tendencies are discussed. |
| Keywords: |
Military Expenditure; Terrorism; Tourism |
| JEL: |
D74 H56 |
| Date: |
2019–01 |
| URL: |
http://d.repec.org/n?u=RePEc:agd:wpaper:19/062&r=all |