Abstract:

Tourism is one of the largest and fastest growing sectors of the global economy. With its contributions to employment, income level, foreign payment balance, regional development etc., tourism has an important place within the overall economy of countries. Mediterranean countries are one of the most popular tourist destinations in the world. The share of tourism sector in the economic growth and development of these countries which are at the forefront in terms of tourism income and the number of international tourists is among the issues that need to be investigated. The aim of this study is to examine the relationship between tourism revenues, international tourist arrivals and economic growth, using data from 7 Mediterranean countries 1995-2017. As discussed in the analysis of panel data regression model, the random effects model was found to be suitable. The model developed against deviations from assumptions, has been estimated by Arellano, Froot ve Rogers robust standard estimator. The results indicate that there is a positive relationship between tourism and economic growth in 7 Mediterranean countries. In this context that a %1 increase in number of international tourists gives way to a %0,09 increase in economic growth and %1 increase in tourism revenues gives way to a %0,07 increase in economic growth.

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