Tourism revenue and economic growyh relationship: The case of Turkey

Tourism activities are considered as one of the main sources of economic growth. As tourism sector in developed and developing countries, it is one of the fastest growing and developing sector in Turkey. The tourism sector contributes positively to the macroeconomic factors of countries. However, the tourism sector is a versatile sector that has important economic impacts such as providing foreign currency inflows to the country, reducing unemployment by creating new jobs, keeping the economy alive, alleviating the problems of balance of payments and contributing to economic growth, as well as social, cultural, political and environmental impacts. For this aim, in the period between the years 1975-2019 for Turkey's tourism revenue by Laguna Distributed relationship between economic growth (ARDL) bounds testing and Granger causality approach was investigated by the method. GDP and tourism income variables used in the study became stable at 1 (I) and 1 (1) degree. As a result of the ARDL limit test, the existence of a cointegration relationship between the variable was determined. After this stage, the long-term and short-term coefficients between the variables were estimated. According to the results, a 1% increase in tourism income will increase GDP by 11.356% in the long run. This result, Gross Domestic tourism income in Turkey suggest that the positive effect on the Product. At the same time, a 1% increase in tourism income in the short term will increase the economic growth by 26.880%. Tourism revenue has contributed to an increase in both short and long-term economic growth in Turkey. Keywords: Tourism, Tourism Revenues, Economic Growth, ARDL, Granger Causality