Investigation of the Relationship Between the Tourism Revenue and the Economic Growth for Türkiye: A Relative Sensitivity Analysis Approach

Abstract

Tourism revenue is an important income component of the Turkish economy since the tourism revenue of Türkiye is ranked among the first fifteen countries in the World. Therefore, the analysis of the effects of tourism revenue of Türkiye on its economic stance is an active research area. This paper investigates the impact of the tourism revenue of Türkiye on the economic growth for the period of 2003-2022 using quarterly data. The causality relationship between the tourism revenue and the economic growth is ssanalysed as the first step employing the Granger causality tests. Then, the relative sensitivity of the economic growth dependent on the tourism income is computed in Python programming language. The result of the relative sensitivity analysis shows that the 1% increment in the tourism revenue leads to the 0.12% increment of the economic growth. The presented method can be applied for the analysis of the effect of the tourism revenue on the economic growth also for other countries.