Turkey's new era growth and innovation utilization strategies: Tourism sector

Many economic approaches influenced by Schumpeter's views examine the relationship between economic growth and technological change. According to Porter, competitive advantage is gained through continuous change, progress and development, i.e. innovation. The spread of international investment and increased cross-cultural exchange have been important factors in the development of international tourism demand. When looking at international tourism movements in the Americas, Europe and the Asia-Pacific regions, it is clear that these are the primary destinations. In this study, the relationship between innovation, tourism revenues and economic growth was examined through panel data analysis, using the 2010-2020 period as a basis for OECD Southern European countries, selected ASEAN countries, China, and India. The dependent variable was economic growth, while the independent variables included public expenditure, fixed capital investments, the ratio of foreign trade volume to GDP, labour force participation rate, secondary school enrolment rate, number of patents, international tourism revenues and a dummy variable (Global Pandemic 2020). In the dynamic panel data analysis (Kenae and Runkle), the lagged dependent variable, public expenditure, human capital, innovation, tourism demand and fixed value dependent variable are significant in explaining the dependent variable. A 1% increase in the variables affects the dependent variable of economic growth negatively (%-0,931) for public expenditure, positively (%0,116) for human capital and positively (%0,498) for tourism demand. A one-unit increase in the innovation variable reduces the economic growth variable by -3,568 units. The analysis results show that tourism increases economic growth.