Does geopolitical risk mitigate inbound tourism? Evidence from panel quantile regression

Abstract

The authors of this study examine the impact of geopolitical risk on inbound tourism in the BRICS (Brazil, Russia, India, China, and South Africa) countries. To this end, they employ second‐generation panel data methods, augmented mean group estimators, and panel quantile regressions. The results of the augmented mean group estimators show that geopolitical risk negatively impacts inbound tourism. However, the results of the panel quantile regressions reveal that the impact is heterogeneous across the distribution. At low quantiles, the impact of geopolitical risk on inbound tourism is marginal, whereas the impact is strong at high quantiles. The study has some policy implications for tourism development.