The Effect of Political Institutional Risk Index on the Attraction of Foreign Tourists in the MENA Countries

Attracting foreign tourists could have a positive impact on the economy through the income achieved, But this requires the provision of minimums that have a determining effect on tourists’ decisions about whether choose or avoid entering a particular country. One of the most important variables influencing the decision is related to safety. The present article was to investigate the effect of institutional political risk index and its sub-indices on attracting tourists. Hence, MENA countries during the period 1995 to 2016 were selected as the test sample. To estimate the models we used FMOLS[1], and results showed that political risk as total factor has a determinant impact on attracting tourists. Also, the estimation showed the internal and external conflict sub-indices among other political risk ones have had a greater effect on attracting foreign tourists.
[1]  Fully Modified Ordinary Least Square