Impact of the rule of law, corruption and terrorism on tourism: Empirical evidence from Mediterranean countries

• Authors: Yilmaz Bayar , Marius Dan Gavriletea , Rita Remeikienė

Abstracts

EN

Research background: Tourism sector is considered as a driving force of economic development and understanding factors that deter the flow of tourists and hinder its development, which is essential for all actors involved in this industry. Purpose of the article: The purpose of the article is to investigate the impact of rule of law, corruption, and terrorism on tourism in 14 coastal states of the Mediterranean Sea based on the United Nations classification. Methods: The short and long-run relationships among the rule of law, corruption, terrorism and tourism are respectively analyzed through Dumitrescu and Hurlin causality test and LM bootstrap cointegration test taking notice of the presence of heterogeneity and cross-sectional dependence. Findings & value added: The causality analysis reveals that control of corruption has a significant influence on tourism only in the short run. The cointegration analysis uncovers that terrorism negatively affects the tourism in Albania, Algeria, Egypt, and Tunisia, but improvements in corruption also positively affect the tourism in Albania, Algeria, Bosnia and Herzegovina, Greece and Italy. Last, the rule of law has a positive impact on tourism in Egypt, Greece, and Israel. In this context, the rule of law can also be a key factor for tourism development via combat with corruption and terrorism. Based on some unique characteristics, the Mediterranean region has consolidated its position as the world's leading tourist destination, but to maintain this competitive position, it is crucial to recognize and adopt strategies that respond to all key challenges faced by this sector.

Keywords

EN

terrorism; public governance; tourism development; mediterranean countries; panel data analysis

• Publisher: Instytut Badań Gospodarczych
• Journal: Oeconomia Copernicana
• Year: 2023
• Volume: 14
• Issue: 3
• Pages: 1009-1035

Dates

published

2023

Contributors

author

Yilmaz Bayar

• Bandirma Onyedi Eylul University

• https://orcid.org/0000000267766524

author

Marius Dan Gavriletea

• Babes-Bolyai University

• https://orcid.org/000000029974256X

author

Rita Remeikienė

• Mykolas Romeris University

• https://orcid.org/000000023369485X

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Identifiers

DOI

10.24136/oc.2023.02930

Biblioteka Nauki

19909399