Abstract:

The tourism sector is an important source of income for the Turkish economy. Positive and negative developments in the tourism sector have an impact on many indicators such as foreign currency inflow and outflow, employment, inflation, balance of payments. For this reason, there are various studies dealing with the effects of tourism revenues on the current account balance and economic growth in Turkey. However, in this study, unlike previous studies, both more up-to-date data are used and short- and long-term relationships between variables are investigated. Afterwards, causality analysis is performed in order to evaluate the results of the analysis more clearly. In the study, ARDL analysis was applied by making use of Turkey's 2005-2021 period, tourism revenues, current account balance and economic growth data. Then, Toda-Yamamoto causality analysis was conducted to examine the causality relationship between the variables. According to the results of the causality analysis, it has been determined that there is a reciprocal relationship between the variables. According to the results obtained from all analyzes in the study, tourism revenues are one of the determinants of current account balance and economic growth. Therefore, in order for Turkey to improve its current account balance and achieve its goal of achieving economic growth, it is important to attract tourists to the country and to implement various policies for this purpose.

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