Abstract:

The aim of the study is to determine the relationship between economic growth and tourism promotion expenditures.. Gross domestic product and international publicity expenditure data of 1998-2018 period belonging to OECD countries determined within the scope of the purpose were used. International promotion expenditures and gross domestic product data covering the period 1998-2018 belonging to OECD countries were used within the scope of the study. OECD countries are divided into groups as high income countries and low income countries, taking into account the 2019 gross domestic product data. Within the scope of the study, Kao and Pedroni cointegration tests were used to test the existence of long-term relationship, and Pedroni Fully Modified OLS and Panel DOLS tests were used to obtain long-term coefficients. As a result of the analysis, a positive relationship was found between international promotion expenditures and economic growth for both high-income countries and low-income countries. According to the results, countries should pay attention to promotional expenditures in terms of contributing to economic growth, and they should also take into account promotional expenditures when formulating tourism-related policies.

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