Testing The Convergence Hypothesis for Turkey’s Tourism Markets: Evidence From Fourier Stationary Analysis
Abstract
Using a dataset covering January-1996 and December-2015 period, this study tests the convergence hypothesis for the major tourism markets of Turkey. In this context, Kwiatkowski-Phillips-Schmidt-Shin (KPSS) test developed through the Fourier function is employed. This test does not lose power due to unknown number, form, and locations of structural breaks. Findings show that the series of 6 (Belgium, Iran, Italy, Russia, England, and Greece) out of 14 countries are stationary, while the other 8 countries (Bulgaria, United States, Germany, Austria, France, Netherlands, Israel, and Romania) have nonstationary series. Overall results seem to be supporting the convergence hypothesis for the 6 countries with stationary series revealing that it is possible to increase to number of visitors coming to Turkey from these countries.
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References
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