An analysis of tourism-led growth hypothesis in Turkey

Abstract

Given the importance of the tourism sector in the sectoral composition, this paper investigates the causality relationship between tourist arrivals and economic growth in Turkey over the period 1996-2021. In order to address the aggregation bias problem, the analysis includes 10 major tourism partners. Empirical results indicate the validity of the tourism-led growth hypothesis for all markets suggesting the importance of aggregation bias in tourism economics.