Tourism and Economic Growth in Turkey: Fourier Approach

OpenAlex · İngilizce

This study deals with the relationship between tourism revenues and economic growth in Turkey over the period 2003Q1-2019Q3 within the framework of Fourier approach.The results of the Fourier ADF unit root test show that the two variables are I(1).Upon this, the Fourier ADL and the Hidden Fourier ADL cointegration tests are applied to investigate the existence of long-term relationship among the aforementioned variables.According to the results of cointegration tests, there is a unidirectional long-term relationship running from economic growth to tourism revenues.Finally, long-term coefficients are estimated through the FMOLS method.When economic growth increases 1%, tourism revenues increase 0.67% considering raw data.According to the asymmetric components of the variables, when economic growth increases 1%, tourism revenues increase 1.41%.