Original scientific paper
https://doi.org/10.37741/t.71.1.4
How do Economic Growth and Terrorism Affect Tourism in the Council of Europe Countries?
Ângela Sofia Laiginhas Pina
; University of Beira Interior, Department of Business and Economics, Portugal
José Alberto Fuinhas
orcid.org/0000-0002-6937-5420
; CeBER and Faculty of Economics of University of Coimbra, Portugal
Zélia Serrasqueiro
; University of Beira Interior, Department of Business and Economics, Portugal
Matheus Belucio
orcid.org/0000-0002-4802-7873
; CEFAGE-UE and University of Évora, Portugal
Abstract
The Council of Europe is one of the oldest European institutions in operation. This paper aims to examine the impact of economic growth and terrorism on international tourism for 33 Council of Europe countries. The period considered for analysis encompasses data from 1995 to 2018. The Panel Autoregressive Distributed Lag method was selected to gauge the short- and long-term impacts. The effects of globalization and the real effective exchange rate were also considered. The presence of sectional dependence heteroscedasticity and first-order autocorrelation in the models inferred the use of the Driscoll and Kraay (1998) estimator. The results of this study emphasize that decision-makers of the Council of Europe should develop public measures that promote tourism activities. At the same time, they can propose measures aimed at increasingly reducing terrorism and develop measures to encourage the attraction and capture of international tourism through the intrinsic advantages of the globalization phenomenon.
Keywords
economic growth; international tourism; terrorism; Council of Europe; panel analysis
Hrčak ID:
294009
URI
Publication date:
20.2.2023.
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