Abstract
In this article, we examine how the economic policy uncertainties and geopolitical risks influence the tourist arrivals in a developing country i.e. India. By resorting to the wavelet analysis, we find that the influence of geopolitical risks is stronger than that of economic policy uncertainties. Besides, geopolitical risks have long-run implications, whereas the economic policy uncertainties hold short-run consequences on tourist arrivals. Thus, the national security and peace protocol must be maintained by the Government, otherwise the fall in tourism demand could impede the economic growth of a country in the long-run.
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