The Effects of Tourism Sector on Economic Growth: The Case of Türkiye

Tourism refers to the travelling and accommodation activities of individuals for various purposes from the regions where they continue their lives permanently to other regions. Economic growth and development are very crucial concepts for developing countries. Tourism plays a crucial role in fostering economic growth and development within societies. The study investigates the utilization of the tourism sector as a catalyst for economic growth and development in the context of the Turkish economy, employing quarterly data spanning from 2003:1 to 2023:2. Methodologically, the analysis incorporates Zivot-Andrews unit root test, Gregory Hansen cointegration test, and Toda Yamamoto causality test. The study contributes to the literature by using the most recent quarterly data and taking into account the structural breaks in the impact of tourism sector on economic growth and the model used. According to the analyses, it is concluded that there exist a cointegrated relationship between tourism expenditures, exchange rate and economic growth series and a reciprocal causality relationship between tourism expenditures and economic growth.