IMPACT OF POLITICAL STABILITY AND ABSENCE OF VIOLENCE/TERRORISM ON TOURISM: A PANEL CO-INTEGRATION ANALYSIS

Abstract

In this study, the effects of political stability and the absence of violence/terrorism on tourism were empirically analysed, from the 2005 to 2018 period. A literature review on terrorism, violence, and political stability in tourism is included in the first part. The second part panel co-integration analysis has been carried out worldwide within 137 countries. As a result of the analysis, a positive long-run relationship was found between the change in the number of tourists and the political stability - no violence index. In addition, it was tried to produce evidence of whether there is an endogeneity between them.