Abstract

This research is designed to study the Granger causality between climate risk, economic stability, and tourism. It uses the heterogeneous panel Granger approach developed by Dumitrescu and Hurlin (2012). This approach is particularly useful for data with cross-sectional dependence and heterogeneity. The findings suggest that, on the one hand, tourism development will be beneficial to national economic stability and, on the other hand, it will contribute to the national climate crisis.

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