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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.
EN
Research background: Although some authors propose that economic growth should reduce crime rates as wider opportunities to earn money in a legal way diminish the incentives to commit illegal activities and lead to rising costs of the latter, the results of many studies indicate that an increase in crime rates is also possible under the conditions of economic growth. There are also differing views on the relationship between various economic indicators and crime rates as well as the nature of the relationship between the above-mentioned phenomena in the long and short run. Purpose of the article: After classifying the EU member states by their crime and economic indicators, the main objective of the article is to assess the relationship between the crime and economic development and identify the causes of this relationship. Methods: Systematic and comparative literature analysis, the Promethee and Entropy methods, Spearman?s correlation coefficient. Findings & value added: The Promethee method, together with the Entropy method, were used to estimate the weights of the EU member states with respect to their crime and economic development indicators. The most pronounced differences were recorded in Portugal, Spain, and the Slovak Republic. The rankings estimated for the EU member states revealed that although economic situation affects crime rate, it can also be affected by the differences in cultural and political development. Scientific novelty lies in complementing the theory of the shadow economy with the results showing that compared to other crimes, corruption has the greatest weight when examining the relationship between economic development and crime. The practical significance of the research lies in classifying the EU member states into 4 groups with consideration of the relationship between crime and economic development, which may help public authorities to devise the target measures for the effective fight against crime given the nature of the relationship between crime and economic development.
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