Testing the asymmetric effects of the economic policy uncertainty on the tourism demand in India

This study examines the effects of economic uncertainty on tourism demand in India for the period 2006:01 to 2018:04. This study has two major contributions. First, using the nonlinear autoregressive distributed lag technique, the asymmetric effects are tested and second, it provides evidence for both long- and short-run effects. The estimated results have confirmed that economic uncertainty has asymmetric effects on tourism demand. Specifically, it is shown that increasing uncertainty has more penetrating negative effects than the positive effects caused by decreasing uncertainty.