Nonlinear nexus between corruption and tourism arrivals: a global analysis.

ABSTRACT: The relationship between corruption and tourism has been sporadically examined over the years. According to the existing theory, there is an inverted U relationship which implies that tourism demand initially increases as corruption increases (greasing the wheels) and after a certain threshold level of corruption, tourism demand decreases (sanding the wheels). Empirical studies so far concentrated on capturing the nonlinear relationship, by applying a simple linear model and by including corruption as a quadratic term. In the current paper, the authors revisit the "greasing and sanding the wheels" hypothesis by applying an advanced econometric technique, the threshold regression model, which deals with a key element of model uncertainty, namely parameter heterogeneity. In particular, using

SUBMITTER: Maria KK 

PROVIDER: S-EPMC8819199 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature