Author(s): İbrahim HÜSEYNİ Ömer DORU

That increasing revenue of country after World War II especially in Europa and increasing free time of employees thanks to syndication has enabled to grow of tourism sector. Tourism sector having grown in world-wide since World War II has contributed economic growth of countries. Foreign currency provided by tourism sector allows to import investment goods and so it indirectly effects the economic growth of countries, especially for developing. The purpose of this study is to investigate the effect of tourism on economic growth for developed countries and Turkey. Data of 41 developed countries, according to World Bank classification determined developed countries, and Turkey from 1995 to 2015 has been used in the study. It has been studied by countries’ GDP current US$, Gross fixed capital formation constant 2010 US$ and International tourism receipts current US$, in the study. It is determined that both equation and variable used in equation contain cross-section dependency. The result of CADF unit root test that allows cross-section dependence shows that all variables are stationary at the first level. Due to the equation contains cross-section dependence co-integration of variables has been investigated by Westerlund (2008) co-integration test which is second generation test and allows cross-section dependence. Finally tourism revenue has positive and statistically significant impact on economic growth has been determined by second generation estimator CCEMG.


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