Impact of Corruption and Insurgency on Tourism Performance: A Case of a Developing Country

ABSTRACT

Insurgency and corruption have consistently remained the bane of economic growth and development of a tourist destination. As such, the impact of corruption indices and insurgency on tourism development in Nigeria is examined by using the Autoregressive Distributed Lag (ARDL) approach. The finding posits a significant long-run relationship of insurgency-corruption indices-tourism receipts nexus. Also, the result reveals that insurgency significantly hampers tourism performance by causing a decrease in the number of tourism arrivals. The impact of corruption on tourism receipts in the long-run depends on the characteristics of the index. For instance, only the social protection and quality of public administration indices exhibit a long-run, positive and significant impact on tourism receipts. The study presents contemporary policy mechanisms to unlock the country’s tourism opportunities.

KEYWORDS:

• Tourism performance
• tourism receipts
• corruption
• insurgency
• the CPIA
• Nigeria

Compliance with Ethical Standards

The author wishes to disclose here that there are no potential conflicts of interest at any level of this study.

Notes

1. Further detail on the Country Policy and Institutional Assessment (CPIA) is available at https://data.worldbank.org/indicator/IQ.CPA.TRAN.XQ.

2. The Institute for Corruption Studies (ICS) provides the indices which will be constructed by ICS such as the Corruption Perceptions Index and the Corruption Reflections Index. http://greasethewheels.org/data/.

3. Time series unit root tests described by Dickey and Fuller (1979), Phillips and Perron (1988) and Kwiatkowski, Phillips, Schmidt, and Shin (1992) were fully employed to ascertain the suitability of ARDL model.