Abstract
Abstract During times when terrorism is eroding almost all industries of victim economies, tourism industry is thought to be much prone to it. This paper investigates the long run relationship between terrorism and tourism for South Asian and African countries separately, allowing us to compare the results of the two regions. Long run relationship is analyzed via dynamic panel techniques (PMG, MG and DFE) on data for 22 African and 6 South Asian countries from 1991 to 2013. These panel cointegration techniques quantify the long-run relationship between terrorism and tourism. Terrorism has been found detrimental for tourism industry both in Africa and South Asia. Empirical findings affirm that terrorism has a long-run negative impact on tourism in both regions. Recommendations, on the basis of findings are proposed at the end.
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