The impact of the economic policy uncertainty and geopolitical risks on tourism demand of Mexico

Veli Yilanci, Sertaç Hopoğlu and Hakan Eryüzlü
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Sertaç Hopoğlu: Iskenderun Technical University, Turkey
Hakan Eryüzlü: Iskenderun Technical University, Turkey

Theoretical and Applied Economics, 2023, vol. XXX, issue 3(636), Autumn, 147-164

Abstract: The aim of this study is to determine the effects of geopolitical risk, representing macropolitical factors that may affect number of inbound tourists, and economic policy uncertainty, representing macro-level events, and exchange rates, on inbound tourists to Mexico over the period January 1996 - December 2018 by using Fourier ARDL and Fourier Toda Yamamoto causality tests. The ARDL analysis showed that inbound tourists to Mexico decrease in the long-run as economic policy uncertainty increases and increase in the long-run as geopolitical risk and real exchange rates increase. Causality tests revealed unidirectional causality running from economic policy uncertainty to inbound tourists.

Keywords: Mexico; international tourist arrivals; geopolitical risk; economic policy uncertainty. (search for similar items in EconPapers)
Date: 2023
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