Abstract:

The tourism sector, which requires a relatively low level of technology and basic skills compared to other sectors, is an important sector in solving macroeconomic problems with the employment it creates and the foreign exchange input it provides, especially in island countries and developing countries. In addition, it is thought to support economic growth by indirectly affecting more than one sector such as the tourism sector, food, beverage, construction, transportation and accommodation. The aim of this study, is to explain the relationship between tourism revenues and economic growth for the Turkish Republic of Northern Cyprus. The existence of the said relationship is determined by the causality test developed by Granger (1969) using the annual data of the TRNC, including the 1990-2019 period, and the causality relationship between tourism revenues and economic growth, and the long-term relationship between the variables is determined by the cointegration test developed by Johansen (1988) analyzed. Within the framework of the findings obtained, there is a bidirectional causality relationship between tourism revenues and economic growth in the short run, and in this case, the feedback hypotesis in tourism is supported fort he TRNC, but according to the cointegration test results; It has been found that the series do not move together in the long run, that is, there is no cointegration relationship between the variables.

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