Negative Externalities of National Security Policies

11 Pages Posted: 25 Jun 2020 Last revised: 13 Jul 2020

See all articles by Nikolaos Karouzakis

Nikolaos Karouzakis

University of Sussex; University of Sussex - School of Business, Management and Economics

Konstantinos Tzioumis

ALBA Graduate Business School

Date Written: June 24, 2020

Abstract

We assess whether national security policies influence tourism exports by using a difference-in-differences approach to evaluate the effect of Executive Order 13769 in January 2017 on visitor arrivals from the Middle East. We find that the volume of visitor arrivals from the Middle East declined by about a quarter following this policy change. These results are robust to alternative estimation approaches and they offer novel insights into how national security laws and policies may affect international travelers' destination trust.

Keywords: Policy evaluation; National security; Travel ban; Destination trust

JEL Classification: F50, Z30, Z38

Suggested Citation

Karouzakis, Nikolaos and Tzioumis, Konstantinos, Negative Externalities of National Security Policies (June 24, 2020). Available at SSRN: https://ssrn.com/abstract=3614886 or http://dx.doi.org/10.2139/ssrn.3614886

Nikolaos Karouzakis

University of Sussex ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

University of Sussex - School of Business, Management and Economics ( email )

Falmer, Brighton BN1 9SL
United Kingdom

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