The Effect Of Tourism Sector On The Economic Growth Performance As A Perception Of Sustainable Development: Turkey Case

Tourism, a service sector, has shown a very rapid development throughout the world. Today, tourism sector accounts for the 30% of total world services trade on its own. Net contribution of tourism to the economies of countries cannot be calculated precisely in that tourism is a coalescence of sector...

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description Tourism, a service sector, has shown a very rapid development throughout the world. Today, tourism sector accounts for the 30% of total world services trade on its own. Net contribution of tourism to the economies of countries cannot be calculated precisely in that tourism is a coalescence of sectors, that is, it embodies a number of large and small service sectors. Nevertheless, theoretical and empirical studies on this subject, in both national and international literature, have revealed that tourism has a positive effect on economic growth. Based on this consideration, it is seen that tourism in Turkey, which is a tourism country, developed rapidly especially after 1980 and tried to gain competitive advantage in international tourism sector, consistently with the Heckscher-Ohlin theory. In this context, the aim of this study is to test whether there is a long term relationship between tourism and economic growth, and to display the likely contribution of the sector to economic growth. Time series regarding the tourism receipts of 1963- 2004 and GNP have been analyzed through VAR model. The empirical findings obtained have shown that tourism has had a positive effect on economic growth, and the cointegration test has proved that there is a mutual relationship between the two variables in the long term. Global system dominating all of the world leads to any social or economic crisis experienced in a country to be felt more or less in all over the world. Under such difficult conditions, when regarding especially in terms of the developed and developing countries, the tourism sector, whose importance grows increasingly, has a character of being a lifesaver. When the natural beauty and cultural richness possessed are marketed with the correct and rational policies, they become an indispensable income resource (Aktas, 2005: 164). In this respect, tourism becomes dominant as one of the fastest developing sectors in the world. Especially, rapid improvement experienced in information and transportation, beyond the expected one, has accelerated the development of tourism having economic and social dimensions. Beginning from the second half of 20th century, tourism becoming important from economic point of view, constitutes a potential revenue resource for the economies of the developing countries (Opus, 2001: 37). Along with the development of tourism in a country, shortage of foreign money moderates; competition power of domestic firms with their competitors abr
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Today, tourism sector accounts for the 30% of total world services trade on its own. Net contribution of tourism to the economies of countries cannot be calculated precisely in that tourism is a coalescence of sectors, that is, it embodies a number of large and small service sectors. Nevertheless, theoretical and empirical studies on this subject, in both national and international literature, have revealed that tourism has a positive effect on economic growth. Based on this consideration, it is seen that tourism in Turkey, which is a tourism country, developed rapidly especially after 1980 and tried to gain competitive advantage in international tourism sector, consistently with the Heckscher-Ohlin theory. In this context, the aim of this study is to test whether there is a long term relationship between tourism and economic growth, and to display the likely contribution of the sector to economic growth. Time series regarding the tourism receipts of 1963- 2004 and GNP have been analyzed through VAR model. The empirical findings obtained have shown that tourism has had a positive effect on economic growth, and the cointegration test has proved that there is a mutual relationship between the two variables in the long term. Global system dominating all of the world leads to any social or economic crisis experienced in a country to be felt more or less in all over the world. Under such difficult conditions, when regarding especially in terms of the developed and developing countries, the tourism sector, whose importance grows increasingly, has a character of being a lifesaver. When the natural beauty and cultural richness possessed are marketed with the correct and rational policies, they become an indispensable income resource (Aktas, 2005: 164). In this respect, tourism becomes dominant as one of the fastest developing sectors in the world. Especially, rapid improvement experienced in information and transportation, beyond the expected one, has accelerated the development of tourism having economic and social dimensions. Beginning from the second half of 20th century, tourism becoming important from economic point of view, constitutes a potential revenue resource for the economies of the developing countries (Opus, 2001: 37). Along with the development of tourism in a country, shortage of foreign money moderates; competition power of domestic firms with their competitors abroad increases, as a consequence, their productivities; scale economies are utilized; tourism makes an effect on foreign trade balance; it creates employment; and as a whole, leading to an increase in national income, it brings forth a positive effect on economic growth (Brohman, 1996: 49- 52). As the number of tourist coming to the country, the demand for producing goods and service in destination country also increases. In parallel with the level of increase in demand, if the country has resources to meet the increase in production, all expenditures of the tourists will remain in that country. So, tourism will make important contribution to the economic growth of country. However, if the county cannot find a power to increase the production in parallel with the increase in demand, it will be necessary to import the production factors remaining insufficient. In this case, if the foreign money profits the country provides from tourism are more than foreign money losses, tourism will positively make to the payments balance, otherwise, negatively affect the pavements balance. Tourism, the fastest developing and growing sector of the world, is seen as an instrument of economic development, in terms of developing countries like Turkey, especially. Turkey, after 1980 transformation, realized important progresses in tourism sector. After 1980, while tourism turned into one of the most remarkable sub-sectors, the social, cultural, and economic effects of this development reached the significant dimensions. When the studies carried out all over the world on the effect of tourism on economic growth are examined, in their studies, Hazari and Ng (1993) argued that tourism will reduce the economic prosperity, and that will create an adverse effect on the growth, in case that a monopole power is existent. However, the analysis of Hazari ve Sgro (1995) investigated the relationship between the variables such as tourism, capital accumulation, consumption per capita, and commercial rates, and concluded that tourism, especially in small counties, positively affected the long termed growth. Modeste (1995), in Caribbean countries, which is considered in his study, demonstrated that tourism developed the country, but this development reasoned in shrinking in agricultural sector. Balaguer ve Jorda (2002), for Spain, found a long termed and positive relationship between tourism revenues and economic growth. Dritsakis (2004) investigating the relationship between tourism revenues and economic grown for the example Greece used cointegration and causality analysis and found a strong causality relationship between the two variables of interest in the period 1960-2000. In the study carried out by Oh (2005) on Korean economy, while a short termed relationship from growth to tourism was found between tourism and economic growth, any long termed relationship could not be found between two variables. In economic model that Durbarry (2004) formed for Mauritius, it is seen that tourism has a positive effect on the economic growth and a great contribution on the economic development of Mauritius. When the studies carried out for Turkey on the relationship between tourism and economic growth are examined, Kirbas-Kasman and Kasman (2004) used Granger Causality Test and concluded that tourism revenues affected the economic growth in one-direction. 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Today, tourism sector accounts for the 30% of total world services trade on its own. Net contribution of tourism to the economies of countries cannot be calculated precisely in that tourism is a coalescence of sectors, that is, it embodies a number of large and small service sectors. Nevertheless, theoretical and empirical studies on this subject, in both national and international literature, have revealed that tourism has a positive effect on economic growth. Based on this consideration, it is seen that tourism in Turkey, which is a tourism country, developed rapidly especially after 1980 and tried to gain competitive advantage in international tourism sector, consistently with the Heckscher-Ohlin theory. In this context, the aim of this study is to test whether there is a long term relationship between tourism and economic growth, and to display the likely contribution of the sector to economic growth. Time series regarding the tourism receipts of 1963- 2004 and GNP have been analyzed through VAR model. The empirical findings obtained have shown that tourism has had a positive effect on economic growth, and the cointegration test has proved that there is a mutual relationship between the two variables in the long term. Global system dominating all of the world leads to any social or economic crisis experienced in a country to be felt more or less in all over the world. Under such difficult conditions, when regarding especially in terms of the developed and developing countries, the tourism sector, whose importance grows increasingly, has a character of being a lifesaver. When the natural beauty and cultural richness possessed are marketed with the correct and rational policies, they become an indispensable income resource (Aktas, 2005: 164). In this respect, tourism becomes dominant as one of the fastest developing sectors in the world. Especially, rapid improvement experienced in information and transportation, beyond the expected one, has accelerated the development of tourism having economic and social dimensions. Beginning from the second half of 20th century, tourism becoming important from economic point of view, constitutes a potential revenue resource for the economies of the developing countries (Opus, 2001: 37). Along with the development of tourism in a country, shortage of foreign money moderates; competition power of domestic firms with their competitors abroad increases, as a consequence, their productivities; scale economies are utilized; tourism makes an effect on foreign trade balance; it creates employment; and as a whole, leading to an increase in national income, it brings forth a positive effect on economic growth (Brohman, 1996: 49- 52). As the number of tourist coming to the country, the demand for producing goods and service in destination country also increases. In parallel with the level of increase in demand, if the country has resources to meet the increase in production, all expenditures of the tourists will remain in that country. So, tourism will make important contribution to the economic growth of country. However, if the county cannot find a power to increase the production in parallel with the increase in demand, it will be necessary to import the production factors remaining insufficient. In this case, if the foreign money profits the country provides from tourism are more than foreign money losses, tourism will positively make to the payments balance, otherwise, negatively affect the pavements balance. Tourism, the fastest developing and growing sector of the world, is seen as an instrument of economic development, in terms of developing countries like Turkey, especially. Turkey, after 1980 transformation, realized important progresses in tourism sector. After 1980, while tourism turned into one of the most remarkable sub-sectors, the social, cultural, and economic effects of this development reached the significant dimensions. When the studies carried out all over the world on the effect of tourism on economic growth are examined, in their studies, Hazari and Ng (1993) argued that tourism will reduce the economic prosperity, and that will create an adverse effect on the growth, in case that a monopole power is existent. However, the analysis of Hazari ve Sgro (1995) investigated the relationship between the variables such as tourism, capital accumulation, consumption per capita, and commercial rates, and concluded that tourism, especially in small counties, positively affected the long termed growth. Modeste (1995), in Caribbean countries, which is considered in his study, demonstrated that tourism developed the country, but this development reasoned in shrinking in agricultural sector. Balaguer ve Jorda (2002), for Spain, found a long termed and positive relationship between tourism revenues and economic growth. Dritsakis (2004) investigating the relationship between tourism revenues and economic grown for the example Greece used cointegration and causality analysis and found a strong causality relationship between the two variables of interest in the period 1960-2000. In the study carried out by Oh (2005) on Korean economy, while a short termed relationship from growth to tourism was found between tourism and economic growth, any long termed relationship could not be found between two variables. In economic model that Durbarry (2004) formed for Mauritius, it is seen that tourism has a positive effect on the economic growth and a great contribution on the economic development of Mauritius. When the studies carried out for Turkey on the relationship between tourism and economic growth are examined, Kirbas-Kasman and Kasman (2004) used Granger Causality Test and concluded that tourism revenues affected the economic growth in one-direction. 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Today, tourism sector accounts for the 30% of total world services trade on its own. Net contribution of tourism to the economies of countries cannot be calculated precisely in that tourism is a coalescence of sectors, that is, it embodies a number of large and small service sectors. Nevertheless, theoretical and empirical studies on this subject, in both national and international literature, have revealed that tourism has a positive effect on economic growth. Based on this consideration, it is seen that tourism in Turkey, which is a tourism country, developed rapidly especially after 1980 and tried to gain competitive advantage in international tourism sector, consistently with the Heckscher-Ohlin theory. In this context, the aim of this study is to test whether there is a long term relationship between tourism and economic growth, and to display the likely contribution of the sector to economic growth. Time series regarding the tourism receipts of 1963- 2004 and GNP have been analyzed through VAR model. The empirical findings obtained have shown that tourism has had a positive effect on economic growth, and the cointegration test has proved that there is a mutual relationship between the two variables in the long term. Global system dominating all of the world leads to any social or economic crisis experienced in a country to be felt more or less in all over the world. Under such difficult conditions, when regarding especially in terms of the developed and developing countries, the tourism sector, whose importance grows increasingly, has a character of being a lifesaver. When the natural beauty and cultural richness possessed are marketed with the correct and rational policies, they become an indispensable income resource (Aktas, 2005: 164). In this respect, tourism becomes dominant as one of the fastest developing sectors in the world. Especially, rapid improvement experienced in information and transportation, beyond the expected one, has accelerated the development of tourism having economic and social dimensions. Beginning from the second half of 20th century, tourism becoming important from economic point of view, constitutes a potential revenue resource for the economies of the developing countries (Opus, 2001: 37). Along with the development of tourism in a country, shortage of foreign money moderates; competition power of domestic firms with their competitors abroad increases, as a consequence, their productivities; scale economies are utilized; tourism makes an effect on foreign trade balance; it creates employment; and as a whole, leading to an increase in national income, it brings forth a positive effect on economic growth (Brohman, 1996: 49- 52). As the number of tourist coming to the country, the demand for producing goods and service in destination country also increases. In parallel with the level of increase in demand, if the country has resources to meet the increase in production, all expenditures of the tourists will remain in that country. So, tourism will make important contribution to the economic growth of country. However, if the county cannot find a power to increase the production in parallel with the increase in demand, it will be necessary to import the production factors remaining insufficient. In this case, if the foreign money profits the country provides from tourism are more than foreign money losses, tourism will positively make to the payments balance, otherwise, negatively affect the pavements balance. Tourism, the fastest developing and growing sector of the world, is seen as an instrument of economic development, in terms of developing countries like Turkey, especially. Turkey, after 1980 transformation, realized important progresses in tourism sector. After 1980, while tourism turned into one of the most remarkable sub-sectors, the social, cultural, and economic effects of this development reached the significant dimensions. When the studies carried out all over the world on the effect of tourism on economic growth are examined, in their studies, Hazari and Ng (1993) argued that tourism will reduce the economic prosperity, and that will create an adverse effect on the growth, in case that a monopole power is existent. However, the analysis of Hazari ve Sgro (1995) investigated the relationship between the variables such as tourism, capital accumulation, consumption per capita, and commercial rates, and concluded that tourism, especially in small counties, positively affected the long termed growth. Modeste (1995), in Caribbean countries, which is considered in his study, demonstrated that tourism developed the country, but this development reasoned in shrinking in agricultural sector. Balaguer ve Jorda (2002), for Spain, found a long termed and positive relationship between tourism revenues and economic growth. Dritsakis (2004) investigating the relationship between tourism revenues and economic grown for the example Greece used cointegration and causality analysis and found a strong causality relationship between the two variables of interest in the period 1960-2000. In the study carried out by Oh (2005) on Korean economy, while a short termed relationship from growth to tourism was found between tourism and economic growth, any long termed relationship could not be found between two variables. In economic model that Durbarry (2004) formed for Mauritius, it is seen that tourism has a positive effect on the economic growth and a great contribution on the economic development of Mauritius. When the studies carried out for Turkey on the relationship between tourism and economic growth are examined, Kirbas-Kasman and Kasman (2004) used Granger Causality Test and concluded that tourism revenues affected the economic growth in one-direction. Adapted from the source document.</abstract></addata></record>
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source Sociological Abstracts; EZB-FREE-00999 freely available EZB journals
subjects Agricultural Development
Causality
Developing Countries
Economic Development
International Trade
Mauritius
Power
Tourism
Turkey
title The Effect Of Tourism Sector On The Economic Growth Performance As A Perception Of Sustainable Development: Turkey Case
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