Please use this identifier to cite or link to this item:
https://hdl.handle.net/20.500.14279/24162
Title: | Nonlinear nexus between corruption and tourism arrivals: a global analysis | Authors: | Krambia-Kapardis, Maria Stylianou, Ioanna Dimitriou, Salomi |
Major Field of Science: | Social Sciences | Field Category: | Economics and Business | Keywords: | Nonlinearities;Threshold regression;Corruption;Tourism demand | Issue Date: | Jan-2022 | Source: | Empirical Economics Journal, 2022, vol. 63, pp. 1997–2024 | Volume: | 63 | Issue: | 4 | Start page: | 1997 | End page: | 2024 | Journal: | Empirical Economics Journal | Abstract: | The relationship between corruption and tourism has been sporadically examined over the years. According to the existing theory, there is an inverted U relationship which implies that tourism demand initially increases as corruption increases (greasing the wheels) and after a certain threshold level of corruption, tourism demand decreases (sanding the wheels). Empirical studies so far concentrated on capturing the nonlinear relationship, by applying a simple linear model and by including corruption as a quadratic term. In the current paper, the authors revisit the “greasing and sanding the wheels” hypothesis by applying an advanced econometric technique, the threshold regression model, which deals with a key element of model uncertainty, namely parameter heterogeneity. In particular, using a sample of 83 countries from 2001 to 2018, the authors firstly examine if there is a nonlinear relationship between corruption and tourism, and then, they estimate the threshold value of corruption. According to the results, the null hypothesis of a linear model against the alternative of a threshold model with two regimes is strongly rejected. Furthermore, while the effect of corruption on tourism is positive in the low corruption regime and negative in the high corruption regime, a heterogeneous relationship is also found between other politicosocio-economic variables and tourism demand in the low and high corruption regimes. | URI: | https://hdl.handle.net/20.500.14279/24162 | DOI: | 10.1007/s00181-021-02193-2 | Rights: | © The Author(s) | Type: | Article | Affiliation : | Cyprus University of Technology University of Central Lancashire (Cyprus) |
Publication Type: | Peer Reviewed |
Appears in Collections: | Άρθρα/Articles |
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s00181-021-02193-2.pdf | Fulltext | 335.73 kB | Adobe PDF | View/Open |
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