Discussion and conclusions
This research integrated data on tourist arrivals with a global database on civil conflict to examine whether increased levels of arrivals reduce the likelihood of conflict. Theoretically, tourism can be grounds for peace or a beneficiary of peace and recent empirical evidence (Pratt & Liu, 2016) shows that the two effects co-exist. To isolate the direction of causality and identify the effect of tourism on peace, the econometric model was estimated using lagged values of tourism and other regressors. In addition, an exogenous source of variation in tourism was used to validate the findings. Results consistently indicated that larger tourism inflows reduce the probability of conflict. This finding was robust to various sensitivity checks, including the estimation of a dynamic model where the current risk of civil war depends on its past values. Thus, this research shows that the peace stabilising role of tourism is not just hypothetical.