ROLE OF TOURISM ON FOREIGN EXCHANGE OF DEVELOPING COUNTRIES AND CASE OF TURKEY

Abstract

Purpose- An important factor restricting the development of developing countries is foreign exchange deficit. Investments require foreign exchange but sufficient foreign exchange can not be obtained through exports and it is difficult to obtain foreign exchange by means foreign  capital, foreign aids and loans, and this makes the metioned countries find adequate and reliable sources. However, countries with rich natural and cultural heritage provide a significant portion of the the required foreign exchange for development with foreign tourism revenues. 

Methodology- In the study, in order to measure the effect of foreign tourism revenues on commodity trade balance in Turkey, using the monthly data in the period 1992: 1-2007: 1, long term relationship between variables was investigated with the Autoregressive Distributed Lag (ARDL) models.

Findings-  It has been determined that financial account and tourism account have a statistically significant effect in the resolved of the goods trade deficit. 

Conclusion- According to the obtained findings, policies and strategies for the development and strengthening of the tourism sector were presented. 

Keywords

• Balance of payments,foreign exchange,tourism,Turkey,ARDL

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