To what extend economic uncertainty effects tourism investments? Evidence from OECD and non-OECD economies

Ender Demir, Giray Gozgor, Sudharshan Reddy Paramati (Lead / Corresponding author)

Research output: Contribution to journalArticlepeer-review

Abstract

This paper aims to examine the role of economic policy uncertainty (EPU) on tourism investments across the samples of OECD, non-OECD, high-income, upper-middle-income, and low-income economies. We account for cross-sectional dependence and endogeneity and also incorporate economic development, financial development, and trade openness indicators in the analyses. By using annual data between 1996 and 2016 and a total of 101 countries, we provide robust estimates on the determinants of tourism investments. The findings from the Common Correlated Effects Mean Group (CCEMG) and the Group Mean approaches show that the EPU has a significant negative impact on tourism investments across the panels. Moreover, other estimates suggest that economic development, financial development, and trade positively contribute to tourism investments.

Original languageEnglish
Article number100758
Number of pages8
JournalTourism Management Perspectives
Volume36
Early online date23 Oct 2020
DOIs
Publication statusPublished - Oct 2020

Keywords

  • CCEMG estimator
  • Economic development
  • Economic policy uncertainty
  • EPU index
  • Tourism investments
  • World uncertainty index

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