EXAMINING THE CAUSAL NEXUS BETWEEN TOURIST ARRIVALS AND TERRORISM IN EMERGING COUNTRIES

The aim of the paper is to analyze the causal nexus between tourist arrivals and terrorism. In this paper, unlike other studies, we used the Global Terrorism Index (GTI) prepared by the Institute for Economics & Peace for the determination of terrorism level of a country. For more unbiased and robust estimates, Dumitrescu and Hurlin (2012) method is employed to examine the causal nexus between tourist arrivals and terrorism in thirteen emerging countries cover the period 2006-2016. The results indicated that there is a one-way causality running from terrorism to tourist arrivals. Results suggest that emerging country authorities should increase security precautions to ensure that tourists feel safe and in order to attract more tourists, ceteris paribus