Original scientific paper
https://doi.org/10.37741/t.73.1.2
Modelling the Asymmetric Impact of Terrorism and Military Expenditure on Tourism Development: A Case of the Tourist Destination Country
Soumen Rej
orcid.org/0000-0001-9098-9286
; Amity Business School, Amity University-Kolkata, Kolkata, India
Md. Emran Hossain
; Applied Science Research Center, Applied Science Private University, Amman, Jordan
*
Arunava Bandyopadhyay
; Department of Finance, International Management Institute Kolkata, India
Charles Shaaba Saba
orcid.org/0000-0001-6230-7292
; School of Economics and Econometrics, College of Business and Economics, University of Johannesburg, Johannesburg, South Africa
Sunil Kumar
orcid.org/0000-0002-8881-2761
; GITAM School of Business, GITAM (Deemed to be University), Visakhapatnam, India
Mantu Kumar Mahalik Mahalik
; Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, West Bengal, India
* Corresponding author.
Abstract
This study evaluates the asymmetric effects of terrorist attacks and military spending on India's tourism sector by considering gross capital formation and foreign direct investment inflows in the tourism function as controlled variables. Considering the period 1980 to 2017, we employed a non-linear autoregressive distributed lag (NARDL) model and frequency domain causality. This study found that a 1% positive (negative) shock in the partial sum of the terrorist incidents would decrease (increase) the tourist arrivals by 0.17% (0.19%), respectively. However, a positive shock in the partial sum of military spending would enhance tourist arrivals, while a negative shock would lower them both in the short and long run. In addition, gross capital formation and foreign direct investment inflows favourably influence India's tourism development in the long run. The findings from frequency domain casualty also resonate with this study's short-run and long-run findings.
Keywords
tourism development; terrorism, military spending; NARDL; frequency domain causality; India
Hrčak ID:
327350
URI
Publication date:
29.1.2025.
Visits: 242 *