Dynamic Panel Data Analysis of the Relationship between Economic Freedom and Tourism

Yıl 2019, , 327 - 343, 31.12.2019

Adnan Muslıja Elma Satrovic , Namik Colakovıc

https://doi.org/10.18074/ckuiibfd.408287

Cited By: 6

Öz

This paper
explores the dynamic relationship between economic freedom and tourism industry.
In addition, the impact of economic growth is controlled in the extended model.
Balanced panel
data are collected for 100 countries over the period 2002-2015. The methodology
includes panel data econometrics. Therefore, models are initially estimated
using fixed and random effects models. Moreover, models are estimated using
linear dynamic panel data estimators based on GMM framework. The results of
linear static panel data estimators indicate a significant positive impact of
economic freedom on tourism in both, initial and extended model. Stronger
impact is reported in initial model. Dynamic panel data models confirm these
results with the stronger impact reported in extended model. Given the importance
of tourism industry, this paper suggests that governments should do necessary
changes to foster the economic freedom since it is found to be an important
factor to attract the foreign tourists.  

Anahtar Kelimeler

economic freedom, panel, relationship

Kaynakça

• Acemoglu, D., Simon, J. and James, A.R., (2001). The Colonial Origins of Comparative Development: An Empirical Investigation. American Economic Review, Vol. 91, pp. 1369-1401.
• Akal, M. (2004).Forecasting Turkey’s Tourism Revenues by ARMAX Model, Tourism Management, Vol. 25, pp. 565-580.
• Baltagi, B. H. (2008). Econometric Analysis of Panel Data. West Sussex: Wiley.
• Beach, W.W. and Kane, T., (2008). Methodology: Measuring the 10 Economic Freedoms, in Heritage Foundation, 2008 Index of Economic Freedom.
• Dawson, J.W. (2003). Causality in the Freedom-Growth Relationship. European Journal of Political Economy, Vol. 19, pp. 479-495.
• Heckelman, J.C. (2000). Economic Freedom and Economic Growth: A Short-Run Causal Investigation, Journal of Applied Economics, pp. 71-91.
• Index of Economic Freedom. (2015). Heritage Foundation.
• Mahmood, M. and Mahmood, E. (2016).Foreign Direct Investment, Exports and Economic Growth: Evidence Two Panels of Developing Countries, Economic Research-Ekonomska Istraživanja, Vol. 29(1), pp. 938-949.
• Muslija, A., Satrovic, E. and Unver Erbas, C, (2017). Panel Analysis of Tourism -Economic Growth Nexus, International Journal of Economic Studies, Vol. 3(4), pp. 535-545.
• Ozcan, C.C, Aslan, M. and Nazlioglu, S. (2017). Economic Freedom, Economic Growth and International Tourism for Post-Communist (Transition) Countries: A Panel Causality Analysis. Theoretical and Applied Economics, Vol. XXIV (2017), No. 2(611), pp. 75-98.
• Saha, S., Su, J. J., and Campbell, N. (2016, in press). Does Political and Economic Freedom Matter for Inbound Tourism? A Cross-National Panel Data Estimation. Journal of Travel Research.
• Satrovic, E. and Muslija, A. (2017). Foreign Direct Investments and Tourism: Empirical Evidence from Turkey, ICPESS Proceedings, ISBN: 978-605-68010-0-6, Vol. 2, pp. 88-100.
• Su, Y. W., and Lin, H.L. (2014). Analysis of International Tourist Arrivals Worldwide: The Role of World Heritage Sites. Tourism Management, Vol. 40, pp. 46-58.
• Uysal, M. and Crompton, J. L. (1984). Determinants of Demand for International Tourist Flows to Turkey, Tourism Management, Vol. 5, pp. 288-97.
• World Development Indicators. (2017). The World Bank.