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The tourism-led growth hypothesis: empirical evidence from Turkey

Authors: Ertugrul, Hasan Murat; Mangir, Fatih;

The tourism-led growth hypothesis: empirical evidence from Turkey

Abstract

In the economic growth literature, the contribution of tourism to economic development has attracted great attention due to its significant roles as a source of foreign exchange earnings, creation of employment opportunities and an important source of public revenues in many countries. In this paper, we aim to analyse the empirical relationship between economic growth and tourism by employing different econometric techniques. First, we employed the Bound test approach developed by Pesaran, Shin, and Smith (2001, Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326) in order to investigate the co-integration relationship between economic growth and tourism. Second, we used the Granger causality analysis for the 1998–2011 period and found evidence of a long-run uni-directional causality running from tourism to economic growth, but not vice versa. Our findings show that the Turkish case supports the tourism-led growth hypothesis (TLGH). Third, the autoregressive-distributed lag approach was employed in order to investigate the long-term and short-term static relationship between tourism and economic growth. The results show that tourism has a positive effect on gross domestic product and economic growth both in the long-term and short-term. Finally, the effect of tourism on economic growth was also investigated dynamically by employing the Kalman filter method. The findings of this method support the TLGH for Turkey.

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Keywords

C5 - Econometric Modeling

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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