Democracy and tourism demand in European countries: does environmental performance matter?
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SHORT RESEARCH AND DISCUSSION ARTICLE
Democracy and tourism demand in European countries: does environmental performance matter? Ojonugwa Usman 1,2
&
Festus Victor Bekun 3,4 & George Nwokike Ike 2
Received: 8 March 2020 / Accepted: 22 July 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Recently, empirical studies revealed that democracy is positively associated with environmental quality through the freedom gained by the people to demand environmental protection. In this paper, we explore empirical evidence linking how environmental performance interacts with democracy to influence tourism demand in twenty-seven European countries. To achieve this objective, we use the method of moments quantile regression (MMQR) model by Machado and Silva (J Econ 213: 145-173, 2019) and a balanced panel data covering the period 2002 to 2014. The empirical results suggest that environmental performance interacts heterogenously with democracy at different quantiles of the conditional distribution to stimulate tourism demand. Also, the effect of an increase in income and environmental performance is stronger in countries with lower tourism market shares than in countries with higher tourism market shares. The major implication for this study is that countries with lesser shares of the tourism market should strive for higher environmental performance and economic development as this would grant them more advantage in the tourism sector than their counterparts with higher market shares. Keywords Tourism demand . Democracy . Environmental performance . Income . MMQR Jel codes L83 . C21 . C22 . Z32
Introduction Responsible editor: Eyup Dogan * Ojonugwa Usman [email protected] Festus Victor Bekun [email protected] George Nwokike Ike [email protected] 1
School of Business Education, Federal College of Education (Technical), Potiskum, Yobe State, Nigeria
2
Faculty of Business and Economics, Department of Economics, Eastern Mediterranean University, via Mersin 10, Gazimagusa North Cyprus, Turkey
3
Faculty of Economics Administrative and Social sciences, Istanbul Gelisim University, Istanbul, Turkey
4
Department of Accounting, Analysis and Audit, School of Economics and Management, South Ural State University, 76, Lenin Aven., Chelyabinsk 454080, Russia
The world has come to realize that to build a sound economy, much attention needs to be given to the development of the tourism industry, which enhances economic growth and job creation. Consequently, tourism development becomes a great concern of the government and its managers in most countries of the world. According to the recent statistics by the United Nations World Trade Organization (2019), the world total earning from international tourism increased over the years with an unprecedented growth of 6% in 2018, which is higher than the growth of the merchandize exports. In European countries, the travel and tourism sector alone generated about 14 million direct jobs in 2017 and 14.4 million in 2018. More so, the contribution of this s
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