TOURISM-LED ECONOMIC GROWTH HYPOTHESIS: AN APPLICATION ON TURKEY

Abstract

Author(s): Ahmet AY Mustafa KARTAL** Aytu ARSLAN

Tourism is seen as one of the most significant export sectors. Its major positive economic impacts are the generation of foreign exchange, helping reduce unemployment and contribution to government revenues. There is no doubt that the tourism income has been considered as the main source of finance to sustain the trade deficit in many developing countries as well. However, when a long-run perspective is considered, the role of tourism as a tool for economic development is a questionable issue. This study examines the tourism-led growth hypothesis (TLGH) in Turkey to find out the causality relationships between tourism earnings and economic growth (GDP), using time series analysis (unit root, VAR, VEC) for the period covering 1980-2014.

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