The Impact of Corruption Control and Political Stability on Tourism (GMM Approach)

Nowadays, tourism is one of the pioneers of the world economy because of its many backward and forward linkages with other economic sectors. Meanwhile, the development of tourism requires the fulfillment of preconditions one of them is security. Therefore, the purpose of this study is to investigate the effect of political stability and corruption control on tourism. To achieve the purpose of this study, the dynamic panel data (GMM) method has been used for 128 countries in the period 2002 to 2018. The results of the study show that the lag of arrival tourists to the countries variable is positive in all the studied countries, developed and developing countries. Also, the coefficient of political stability and control of corruption indicators were positive and significant. These results showed that political stability and strong bureaucracy lead to better management in the economic and political environments and international tensions to be minimized. Such environments will be desirable destinations for tourists. Also, in countries that have strong international linkage and trade and take the control corruption program seriously and implement it, the possibility of tourists entering them is higher, and tourists are more likely to choose these countries as tourist destinations. According to the results, it is suggested that countries implement policies and programs to promote political stability and control corruption. Countries with lower GDP per capita can help their tourism boom by increasing investment in tourism (higher than the global average share of tourism investment divided by GDP).