IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v15y2025i2p213-224id5292.html
   My bibliography  Save this article

The spillover effects of financial system and tourism on the informal economies: Evidence from Turkey

Author

Listed:
  • Hatice Imamoglu

Abstract

This article examines the impact of the financial system and tourism on the informal economy in Turkey, a country known for its emerging economy, its status as a sun-sea-culture destination, and its substantial informal sector. Time series data from 1960 to 2019 will be used to provide real-world evidence. Both dynamic and fully modified ordinary least squares estimations will be used, in line with second-generation econometric techniques that take into account structural breaks in the series for unit root and cointegration tests. The results highlighted an inverted U-shaped relationship between the financial system and the informal economy, in contrast to a U-shaped relationship between tourism volume and the informal economy. These outcomes imply the necessity of financial inclusion and the establishment of efficient mechanisms to minimize informality. Moreover, policymakers in Turkey should prioritize bolstering the number of firms in the sector, enhancing sustainability, and promoting local sourcing and certification systems. Additionally, policymakers should prioritize enhancing affordable financing sources for small-to-medium-sized enterprises, particularly those in the tourism sector, to facilitate their transition into the formal economy.

Suggested Citation

  • Hatice Imamoglu, 2025. "The spillover effects of financial system and tourism on the informal economies: Evidence from Turkey," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 15(2), pages 213-224.
    • Handle: RePEc:asi:aeafrj:v:15:y:2025:i:2:p:213-224:id:5292
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/5292/8161
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:15:y:2025:i:2:p:213-224:id:5292. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.