The Effects of International Tourism Receipts on Economic Growth: Evidence from the First 20 Highest Income Earning Countries from Tourism in the World (1996-2016)

In this study, the effects of tourism receipts on economic growth will be investigated econometrically for the top 20 countries earning most from international tourism (WTR-20) in the world for the period 1996-2016. From this aspect, this study aimed to empirically evaluate whether international tou...

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Bibliographic Details
Published in:Montenegrin journal of economics 2018-08, Vol.14 (3), p.55-71
Main Authors: Yalçinkaya, Ömer, Daştan, Muhammet, Karabulut, Kerem
Format: Article
Language:English
Subjects:
Causality
Consumption
Data analysis
Developing countries
Econometrics
Economic Growth
Economic models
Expenditures
Hypotheses
International Tourism Receipts
LDCs
Production functions
Second Generation Panel Data Analysis
Studies
Sustainability of Economic Growth
Time series
Tourism
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Summary:In this study, the effects of tourism receipts on economic growth will be investigated econometrically for the top 20 countries earning most from international tourism (WTR-20) in the world for the period 1996-2016. From this aspect, this study aimed to empirically evaluate whether international tourism receipts have an effect on economic growth performances of the developed and developing countries in the WTR-20 group as proposed by theoretical literature under the tourism-led growth hypothesis. To determine the effects of international tourism receipts on economic growth for WTR-20 group countries, a model is an extended form of Cobb-Douglas type of production function, will be estimated under the secondgeneration panel data analysis considering cross-sectional dependence. As a result of the study, it is determined that international tourism revenues have a positive and statistically significant effect on economic growth in the WTR-20 group countries. Also, it is found that there was unilateral causality running from international tourism receipts to economic growth in the WTR-20 group countries. These findings, which are in keeping with the theoretical literature under the tourism-led growth hypothesis, indicate that international tourism receipts have a significant effect on providing economic growth and gaining sustainability in WTR-20 group countries with their current structures.
ISSN:1800-5845
1800-6698
DOI:10.14254/1800-5845/2018.14-3.4