Does Country Risk Influence International Tourism? A Dynamic Panel Data Analysis

14 Pages Posted: 5 Jun 2008

See all articles by Tiago Neves Sequeira

Tiago Neves Sequeira

University of the Interior of Beira - Faculty of Social Sciences and Humanities; New University of Lisbon - Faculdade de Economia

Paulo Maçãs Nunes

Beira Interior University

Abstract

International tourism determinants have been studied in recent research, and focus has been given to estimation of demand equations. Country risk has been somewhat neglected in the analysis. Given adequate controls for price and income, we show that country risk is a robust and significant determinant of tourism specialisation of countries: a 1 per cent increase in country risk causes a 0.2 per cent fall in tourism specialisation. Policy-makers should be aware of the negative effect country risk has in tourism, as this is seen as one of the most promising sectors for development.

Suggested Citation

Neves Sequeira, Tiago and Nunes, Paulo Maçãs, Does Country Risk Influence International Tourism? A Dynamic Panel Data Analysis. Economic Record, Vol. 84, Issue 265, pp. 223-236, June 2008, Available at SSRN: https://ssrn.com/abstract=1140886 or http://dx.doi.org/10.1111/j.1475-4932.2008.00464.x

Tiago Neves Sequeira (Contact Author)

University of the Interior of Beira - Faculty of Social Sciences and Humanities ( email )

6200-209 Covilha
Portugal

New University of Lisbon - Faculdade de Economia ( email )

Campus de Campolide
Lisboa, 1099-032
Portugal

Paulo Maçãs Nunes

Beira Interior University ( email )

Estrada do Sineiro
Portugal

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