A panel data analysis of the effect of corruption on tourism

Poprawe, Marie L.

doi:10.1080/00036846.2015.1005874

Cited by 77 publications

(88 citation statements)

References 29 publications

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“…Second, we estimate following empirical models in line with the previous literature (e.g., Balli et al, ; Poprawe, ):

{TOURIST}_{italicij, t} = β_{0} + β_{1} {RCORRUPTION}_{italicij, t} + β_{2} {GDP}_{italicij, t} + β_{3} {TRADE}_{italicij, t} + β_{4} {POPULATION}_{italicij, t} + β_{5} {BED}_{j, t} + β_{6} {RER}_{italicij, t} + β_{7} {DISTANCE}_{ij} + β_{8} {BORDER}_{ij} + β_{9} {RELIGION}_{ij} + β_{10} {LANGUAGE}_{ij} + ε_{italicij, t}

{TOURIST}_{italicij, t} = β_{0} + β_{1} {CORRUPTION}_{i, t} + β_{2} {GDP}_{italicij, t} + β_{3} {TRADE}_{italicij, t} + β_{4} {POPULATION}_{italicij, t} + β_{5} {BED}_{italicij, t} + β_{6} {RER}_{italicij, t} + β_{7} {DISTANCE}_{ij} + β_{8} {BORDER}_{ij} + β_{9} {RELIGION}_{ij} + β_{10} {LANGUAGE}_{ij} + ε_{italicij, t}

…”

Section: Data Empirical Model and Econometric Methodologymentioning

confidence: 99%

“…Therefore, the fixed effects regression techniques are used at the first stage, time‐invariant variables are then dropped out. As suggested by Poprawe (), the approach of Hausman and Taylor () can be an appropriate technique of estimating all coefficients in a panel data model with the time‐invariant and the time‐varying variables. We run the model without time‐invariant variables with the fixed‐effects and then perform the Hausman–Taylor (HT) approach with all variables.…”

Section: Data Empirical Model and Econometric Methodologymentioning

confidence: 99%

“…This may lead to a reluctance of going to high corruption countries, and tourists can prefer countries with similar characteristics in terms of corruption. Although the literature examines the impact of corruption on tourist arrivals, the relative corruption, which is implicitly mentioned by Poprawe (), is not considered. Driffield, Mickiewicz, Pal, and Temouri () also consider the relative corruption as the difference between host and home country.…”

Section: Tourism and Corruption: Theoretical Considerationsmentioning

confidence: 99%

“…In addition, they are statistically significant all models at the 10% level at least. These findings for the control variables are in line with the previous literature (Balli et al, Balli et al, Naudee & Saayman, Poprawe, ). Note that the coefficient of the relative corruption is found as −0.065, and it is statistically significant at the 1% level.…”

Section: Empirical Findings and Policy Implicationsmentioning

confidence: 99%

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What about relative corruption? The impact of the relative corruption on the inbound tourism to Turkey

Demir

Gözgör

2017

Int. J. Tourism Res.

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This paper examines the impact of corruption on the number of tourist inflows to Turkey from 70 countries for the period from 1996 to 2014. For this purpose, it is the first paper to examine the effects of not only the absolute corruption but also the relative corruption on the tourist arrivals in the literature. By using the fixed effects, the generalized methods of moments, and the Hausman–Taylor estimations, we find that level of the relative corruption negatively affects the inbound tourism to Turkey.

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“…Second, we estimate following empirical models in line with the previous literature (e.g., Balli et al, ; Poprawe, ):

{TOURIST}_{italicij, t} = β_{0} + β_{1} {RCORRUPTION}_{italicij, t} + β_{2} {GDP}_{italicij, t} + β_{3} {TRADE}_{italicij, t} + β_{4} {POPULATION}_{italicij, t} + β_{5} {BED}_{j, t} + β_{6} {RER}_{italicij, t} + β_{7} {DISTANCE}_{ij} + β_{8} {BORDER}_{ij} + β_{9} {RELIGION}_{ij} + β_{10} {LANGUAGE}_{ij} + ε_{italicij, t}

{TOURIST}_{italicij, t} = β_{0} + β_{1} {CORRUPTION}_{i, t} + β_{2} {GDP}_{italicij, t} + β_{3} {TRADE}_{italicij, t} + β_{4} {POPULATION}_{italicij, t} + β_{5} {BED}_{italicij, t} + β_{6} {RER}_{italicij, t} + β_{7} {DISTANCE}_{ij} + β_{8} {BORDER}_{ij} + β_{9} {RELIGION}_{ij} + β_{10} {LANGUAGE}_{ij} + ε_{italicij, t}

…”

Section: Data Empirical Model and Econometric Methodologymentioning

confidence: 99%

Section: Data Empirical Model and Econometric Methodologymentioning

confidence: 99%

Section: Tourism and Corruption: Theoretical Considerationsmentioning

confidence: 99%

Section: Empirical Findings and Policy Implicationsmentioning

confidence: 99%

See 2 more Smart Citations

What about relative corruption? The impact of the relative corruption on the inbound tourism to Turkey

Demir

Gözgör

2017

Int. J. Tourism Res.

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“…They quantify the cost and benefit of corruption and property right enforcement laws to reach equilibrium where corruption becomes benefic to entrepreneurship. Poprawe (2014) studies the effect that corruption has on the tourism sector. The results showed that it negatively affects this sector and thus the whole economy.…”

Section: Literature Reviewmentioning

confidence: 99%

Entrepreneurship and its link to corruption: Assessment with the most recent world and country-group data

Driouchi¹,

Gamar²

2016

J. Afr. Stud. Dev

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Entrepreneurship is an important intangible asset of nations. The relatively recent progress in its measurement, mainly with the Global Entrepreneurship Development Index (GEDI), suggests that previous questions related to its determinants and mainly its relationship to corruption, namely the Corruption Perception Index (CPI) needs to be re-addressed. The objective of the present paper is to assess the links between GEDI and CPI using the most recent (2013-2014) published data on world countries included in the GEDI. The relationships are estimated overall countries included in the GEDI and over groups of countries. The attained results show consistently the positive effect of corruption reduction on GEDI and thus the positive relationship between an intangible good that is entrepreneurship and an intangible bad that is corruption. These results confirm that the recent available data are supportive of anti-corruption policies that are likely to favor the growth of entrepreneurial activities with promoting market development and ensuringthe growth of both tangible and intangible components of the wealth of nations.

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Tourist municipalities and local political corruption

Jiménez

Nombela

Suárez-Alemán

2017

Journal of Tourism Research

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Are tourist municipalities a breeding ground for corruption? Before the 2008 economic crisis, Spain experienced an economic boom, together with a surge in political corruption at the local level. In a tourism‐oriented economy – tourism represents above 11% of country GDP – where most of the tourism activity is focused on certain municipalities, understanding the link between tourism and corruption at the local level is crucial. Whether those municipalities present differences from non‐tourist local governments when it comes to corruption represents the main research question of the present paper. Also, this paper analyzes whether voting behavior in these municipalities hides some particularities related to corrupt activities. This paper gathers information on municipalities' public accounts and fiscal revenues generated by businesses in the local area, together with the results of four local recent elections. Estimations show how tourism contributes to the existence of local political corruption. Interestingly, local governments in tourist municipalities are also proven to be more stable than those in non‐tourist municipalities.

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A panel data analysis of the effect of corruption on tourism

Cited by 77 publications

References 29 publications

What about relative corruption? The impact of the relative corruption on the inbound tourism to Turkey

What about relative corruption? The impact of the relative corruption on the inbound tourism to Turkey

Entrepreneurship and its link to corruption: Assessment with the most recent world and country-group data

Tourist municipalities and local political corruption

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