Open AccessPanel Granger causality analysis of relationships between tourism and economic growth in the top eight tourist destinations
Author(s) -
Özgür Bayram Soylu
Publication year - 2020
Publication title -
ekonomski pregled
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.134
H-Index - 9
eISSN - 1848-9494
pISSN - 0424-7558
DOI - 10.32910/ep.71.4.5
Subject(s) - tourism , granger causality , panel data , context (archaeology) , economics , revenue , gross domestic product , causality (physics) , economy , economic geography , foreign direct investment , balance of payments , international economics , business , geography , macroeconomics , finance , physics , archaeology , quantum mechanics , econometrics
The tourism has economic, social and political effectsand contributes to the economic development of many countries. Interactionlevels of national economies increase with tourism through globalization. Thisstudy aims to test the causality relationship between the components of thetourism and economic growth. The causality relationshipbetween the components of the tourism and economic growth by using panelcausality analysis method. The findings indicate a bi-directionalcausality relationship between growth and tourism expenditures and tourismrevenues. Tourismexpenditures, tourism receipts and number of international arrivals areparameters of the tourism. Real gross domestic product ratio is used as agrowth indicator. The top eight tourist destinations are analyzed; Spain,Italy, Russia, Turkey, France, China, USA, UK. In this context; A panel datasetwas created for the top eight tourismcountries over the period 1995–2017. The arrivals oftourists, expenditure levels of tourists and tourism receipts are importantindicators for the national economies. The positive effects of these indicatorson the balance of payments, being a source of foreign exchange, employmentcreation, triggering investment in infrastructure and superstructure andcreating a revitalizing effect in other sectors, have an important place in theregion and country economy with their socio-cultural reflections.