Global Tourism and Waves of Terror: Perspectives from Military Expenditure

Journal of Policy Research in Tourism, Leisure and Events,12(2), pp. 239-261(2020).

29 Pages Posted: 15 Oct 2019 Last revised: 21 Jul 2020

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Paul N. Acha-Anyi

Walter Sisulu University; Walter Sisulu University - School of Law

Date Written: January 1, 2019

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 Classification: D74; H56; Z32; Z38

Suggested Citation

Asongu, Simplice and Acha-Anyi, Paul N., Global Tourism and Waves of Terror: Perspectives from Military Expenditure (January 1, 2019). Journal of Policy Research in Tourism, Leisure and Events,12(2), pp. 239-261(2020)., Available at SSRN: https://ssrn.com/abstract=3463999 or http://dx.doi.org/10.2139/ssrn.3463999

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Paul N. Acha-Anyi

Walter Sisulu University ( email )

Department of Tourism
College Street Campus
East London, Eastern Cape
South Africa

Walter Sisulu University - School of Law ( email )

Nelson Mandela Drive
Mthatha, Eastern Cape 5099
South Africa

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