THE EFFECT OF TOURISM REVENUES ON FOREIGN TRADE DEFICIT: THE CASE OF TURKEY


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YILMAZ H., ŞANLI O., YILMAZ Y.

International Journal of Business and Management Studies, vol.04, no.01, pp.25-34, 2015 (Peer-Reviewed Journal)

Abstract

As previous studies concerning tourism in Turkey suggest, tourism sector is a leading sector in Turkish economy, playing an important role in meeting the foreign trade deficit. The present study?s empirical part analyzes the relationship between tourism revenues and foreign trade deficit (goods export-import) by using data related to Turkey's monthly tourism revenues and monthly foreign trade deficits between 2003 and 2013. Empirical analysis made use of Johansen Cointegration Tests as well as error correction model tests and various results were obtained. The study?s empirical analysis suggested that there was a significant cointegration relation between tourism revenues and foreign trade deficit.