Abstract:

Tourism, one of the fast-growing sectors in the world, has become important for all countries. However, with the process of globalization, foreign direct investment in developing countries has also increased. In this context, foreign direct investments can play an important role in improving the capital and infrastructure necessary for the development of the tourism sector, especially in developing countries. With the development of tourism, the increasing demand for many sectors encourages multinational companies to invest. The aim of this study is to explore the causal relationship between foreign investments and the number of tourists coming from the point of view of Turkey. In this context, the variables were analyzed using data from the 2005:1-2019:4 period by Granger causality and Johansen equalization methods. The study found that there was a co-integration relationship between the variables. There is also a one-way causal relationship from the number of tourists coming directly to foreign investments.

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