Nexus Between Geopolitical Risk and Tourism Demand in India: Evidence from the ARDL Approach

The present study aims to examine the nexus between geopolitical risk and foreign tourist arrivals in India. In addition, other variables which impact tourist arrival in other parts of the world have also been included. To achieve the objectives of the study, the auto-regressive distributed lag (ARDL) model propounded by Pesaran et al. has been applied using quarterly data from 2001: Q1 to 2019: Q4. The findings of the study reveal that geopolitical risk negatively affects foreign tourist arrival in India. Besides, the study also captures the income and price determinants as propounded by classical economists. JEL Codes: C500; P0; Z30