Terror and tourism: How bad news can harm economic development (VOX)

Reporting on violence draws attention to countries not typically covered by international news outlets. This leads to a ‘bad news’ bias, which can affect not only how people view these countries, but whether they choose to visit. Using aggregated spending data to proxy tourist activity, this column documents a robust relationship between the intensity of reporting on violence and subsequent drops in tourist spending, suggesting that a bad news bias can have serious economic consequences for the countries that suffer from it.

https://voxeu.org/article/how-bad-news-can-harm-economic-development

Tim Besley, Thiemo Fetzer, Hannes Mueller

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