Long-run nexus between tourism receipts and economic growth : empirical evidence from Turkey

Abstract

Purpose: The aim of the study is to reveal the relationship between economic growth and tourism receipts between 1995 and 2018 for Turkey. -- Design/methodology/approach: Econometric analysis method was used in the research. The existence of a long-term relationship between variables was questioned by the Johansen Cointegration Test. Least Squares Method was used for regression analysis. -- Findings: The results suggest that there is cointegration between economic growth and tourism receipts. In the longrun tourism receipts effect economic growth positively. According to the estimated model with Least Squares Method, each %1 increse in the tourism receipt increases GDP %0.21 and the percentage change in the tourism receipts can explain the %86 of the percentage change in GDP in the %95 confidence interval. -- Practical implications: This research has significant implications for both policy makers and investors. The government has to consider the effect of the tourism industry while planning the investments, expenditures and incentives. -- Originality/value: This study allows to make forecast for the future and gives opportunity to make comparison for the subsequent researchers with the latest findings in this field.