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The Relation between Current Account Deficit and Tourism: The Case of Turkey

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  • El in Aykac Alp

    (Istanbul Commerce University, Faculty of Commercial Sciences, Istanbul, Turkey.)

  • Elif Guneren Genc

    (Istanbul Commerce University, Faculty of Commercial Sciences, Istanbul, Turkey.)

Abstract

In this study the effects of service's balance, tourism balance and current account deficit are studied. In the countries with a relatively small share in the current account of the tourism industry, the analysis related to tourism and foreign trade has biased results. For this reason, this study examines how the tourism industry affects the service industry and by this means how it affects the current account balance. The second important issue is that linear time series methods are inadequate because of the nature of the structure of the variables.

Suggested Citation

  • El in Aykac Alp & Elif Guneren Genc, 2015. "The Relation between Current Account Deficit and Tourism: The Case of Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 448-453.
    • Handle: RePEc:eco:journ1:2015-02-15
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    References listed on IDEAS

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    Cited by:

    1. Maja Bacovic & Danijela Jacimovic & Julija Cerovic Smolovic, . "Impact of Export of Travel Services on Current Account Balance and Growth in Mediterranean Countries," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    2. Maja Bacovic & Danijela Jacimovic & Julija Cerovic Smolovic, 2020. "Impact of Export of Travel Services on Current Account Balance and Growth in Mediterranean Countries," Prague Economic Papers, Prague University of Economics and Business, vol. 2020(6), pages 710-728.

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    More about this item

    Keywords

    The Current Account Balance; Service Industry; Tourism Industry; Threshold Autoregressive Vector Error Correction Models;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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