The Relationship Between Tourism, Economic Growth, Trade Openness, And Financial Development: The Case Of Turkey

This study investigates the relationship between economic growth, trade openness, the number of tourist arrivals, and financial developments for Turkey employing ARDL bounds testing approach and variance decomposition analysis for the period of 1963-2016 both in the short and long run. ADF, PP and Ng-Perron unit root tests carried out to examine the order of integration of the variables. ARDL test results reveal that trade openness, the number of tourist arrivals, and financial development have positive and significant impact on economic growth both in the short and long run growth. Moreover, the variance decomposition results indicate that financial development has the highest impact on economic growth among other variables in Turkey.