Abstract:

Tourism revenues and foreign debts are among the important variables that bring source funding in foreign currency for the economies of the countries. The aim of this study is to reveal the relationship between tourism revenues and foreign borrowing for the Turkish economy. For this purpose, the analysis was carried out between 2003Q1 and 2021Q1 using the Johansen-Juselius (1990) cointegration method and the error correction model. According to the findings, there is one cointegration relationship between the related series and the error correction mechanism works. In addition, in the analysis, it was found that the direction of the relationship was from tourism revenues to foreign borrowing and it was determined that 1% increase in tourism revenues in the long term caused a 0.262% decrease in foreign debts in the related period. The research is very important for the Turkish economy within the framework of the subject discussed in terms of gaining the literature.

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