Does proximity to conflict affect tourism: Evidence from NATO bombing.

Although conflict, war, violence, and terrorism affect tourism, research that identifies possible channels of these effects is scarce. We explore if the adverse effects are channelled through proximity to conflict areas. We use the conflict in Kosovo in 1999 and the country Croatia as a quasi-natura...

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Autores principales: Marina Tkalec, Ivan Žilić
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Lenguaje:EN
Publicado: Public Library of Science (PLoS) 2021
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Acceso en línea:https://doaj.org/article/2ad59973ea3e4bd99f6dfb74be19f05a
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spelling oai:doaj.org-article:2ad59973ea3e4bd99f6dfb74be19f05a2021-12-02T20:13:37ZDoes proximity to conflict affect tourism: Evidence from NATO bombing.1932-620310.1371/journal.pone.0258195https://doaj.org/article/2ad59973ea3e4bd99f6dfb74be19f05a2021-01-01T00:00:00Zhttps://doi.org/10.1371/journal.pone.0258195https://doaj.org/toc/1932-6203Although conflict, war, violence, and terrorism affect tourism, research that identifies possible channels of these effects is scarce. We explore if the adverse effects are channelled through proximity to conflict areas. We use the conflict in Kosovo in 1999 and the country Croatia as a quasi-natural experiment and take advantage of the specific north-west to south-east orientation of Croatian Adriatic counties to identify the effect of NATO bombing in Kosovo on tourism outcomes as well as the potential proximity channel. Using data on the population of Croatian firms and the difference-in-differences identification strategy we find that tourism companies' revenues decreased significantly due to NATO bombing, especially in accommodation services and in companies with 50 or more employees. However, using a synthetic control approach we find that the adverse effect is only transitory. Analysing heterogeneous effects with respect to the distance of the firm from Kosovo-using a linear and a more flexible model-we find compelling evidence that within-country proximity to conflict is not a significant channel through which the negative effect propagates.Marina TkalecIvan ŽilićPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 10, p e0258195 (2021)
institution DOAJ
collection DOAJ
language EN
topic Medicine
R
Science
Q
spellingShingle Medicine
R
Science
Q
Marina Tkalec
Ivan Žilić
Does proximity to conflict affect tourism: Evidence from NATO bombing.
description Although conflict, war, violence, and terrorism affect tourism, research that identifies possible channels of these effects is scarce. We explore if the adverse effects are channelled through proximity to conflict areas. We use the conflict in Kosovo in 1999 and the country Croatia as a quasi-natural experiment and take advantage of the specific north-west to south-east orientation of Croatian Adriatic counties to identify the effect of NATO bombing in Kosovo on tourism outcomes as well as the potential proximity channel. Using data on the population of Croatian firms and the difference-in-differences identification strategy we find that tourism companies' revenues decreased significantly due to NATO bombing, especially in accommodation services and in companies with 50 or more employees. However, using a synthetic control approach we find that the adverse effect is only transitory. Analysing heterogeneous effects with respect to the distance of the firm from Kosovo-using a linear and a more flexible model-we find compelling evidence that within-country proximity to conflict is not a significant channel through which the negative effect propagates.
format article
author Marina Tkalec
Ivan Žilić
author_facet Marina Tkalec
Ivan Žilić
author_sort Marina Tkalec
title Does proximity to conflict affect tourism: Evidence from NATO bombing.
title_short Does proximity to conflict affect tourism: Evidence from NATO bombing.
title_full Does proximity to conflict affect tourism: Evidence from NATO bombing.
title_fullStr Does proximity to conflict affect tourism: Evidence from NATO bombing.
title_full_unstemmed Does proximity to conflict affect tourism: Evidence from NATO bombing.
title_sort does proximity to conflict affect tourism: evidence from nato bombing.
publisher Public Library of Science (PLoS)
publishDate 2021
url https://doaj.org/article/2ad59973ea3e4bd99f6dfb74be19f05a
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