Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205032 
Year of Publication: 
2019
Series/Report no.: 
AGDI Working Paper No. WP/19/062
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
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.
Subjects: 
Military Expenditure
Terrorism
Tourism
JEL: 
D74
H56
Z32
Z38
Document Type: 
Working Paper

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