Abstract

Economic convergence has two meanings: the first refers to a more equitative system of wealth distribution (sigma-convergence), whereas Beta convergence is related to a higher rate of growth within poor countries than in rich ones. Assessing Neoclassical Growth through the convergence hypothesis has been catching the attention of the researchers since the 1950s. In order to test convergence, statistical methods such as regression analysis and panel data analysis are generally used. However, these methods are based on some strict assumptions that the practical problems do not support. This study purposes fuzzy convergence method that does not require any assumptions. Fuzzy convergence is based on fuzzy logic that is especially used to analyze problems including uncertainty, vagueness or impreciseness. Fuzzy convergence has been proposed for the first time in this study and has been used firstly to test whether fuzzy convergence is present or not in terms of international tourism receipts. This study aims to estimate which membership values of countries or regions are convergent or divergent, in the other words, introducing the part-convergence and part-divergence concept. The results suggest that fuzzy convergence exists within countries. The originality of this study is to use convergence concept based on fuzzy logic. Thus, we aim to estimate which membership values of countries or regions are convergent or divergent, in other words, introducing the part-convergence and part-divergence concept.

Highlights

  • During the last two decades, tourism has grown rapidly and the importance of the tourism sector within the world economy is increasing

  • Univariate variance analysis and panel Lagrange Multiplier are used in the work observing that there existed convergence in the Malaysian tourism sector. These findings indicate that Malaysian tourism strategies were successful and tourism contributes to economic development

  • We propose the fuzzy convergence method based on fuzzy logic that are especially used to analyse problems including uncertainty, vagueness or imprecision

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Summary

Introduction

During the last two decades, tourism has grown rapidly and the importance of the tourism sector within the world economy is increasing. Due to its labour-intensive structure, tourism is seen as a sector that may help to solve the unemployment problem within underdeveloped regions and reestablish the competitiveness that has been lost in the agriculture sector (Bahar & Kozak, 2007: 61) tourism directly or indirectly affects other sectors such as agriculture, manufacture, transportation, trade, construction, accommodation, food-drink, communication, banking and health services due to the spillover effect (Soukiazi & Proença, 2008: 792). Tourism improves national economies through all the investments made to meet the service needs of tourists (Proença & Soukiazi, 2008: 44-45). There is a strong relationship between tourism and other sectors

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