Effects of the tourism industry on the balance of payments deficit

Çelik, Ali Kemal; Özcan, Sami; Topcuoğlu, Abdullah; Yildirim, Kürşad Emrah

doi:10.1080/13032917.2013.772529

Cited by 18 publications

(8 citation statements)

References 8 publications

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“…The second contribution is estimation of impact of export of travel services on current account equilibrium using the most recent data for Mediterranean countries, as a study at this level but also over such a time frame, to the best of our knowledge, is not available in literature yet. Studies by Celik et al (2013), Alp and Gene (2015), Bartlett (2009) and Thano (2015) also confi rm the relevance of revenues from export of travel services, but on different samples and time frames. The study results have even more signifi cance due to the fact that international tourist arrivals in EU countries are expected to grow by 2.1% on average each year until 2025, compared to an annual average of 2.4% in the period 1995-2010.…”

Section: Resultsmentioning

confidence: 96%

“…The empirical fi ndings suggest that the increase in tourism revenues in Turkey between 1984 and 2012 has resulted in a 14% decrease of balance of payments defi cit. Celik et al (2013) and Alp and Gene (2015) also confi rmed the positive impact of services on international trade and current account balance. The importance of tourism earnings to foreign exchange earnings and balance of payment in early development phases in Greece was addressed in the work of Papadopoulos and Mirza (1986); also in Italy (Formica and Uysal, 1996).…”

Section: Literature Reviewmentioning

confidence: 94%

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Impact of Export of Travel Services on Current Account Balance and Growth in Mediterranean Countries

Baćović¹,

Jaćimović²,

Smolović³

2020

Prague Economic Papers

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Observing the expanding and high share of export of travel services in both GDP and total export of services in Mediterranean countries, we focus our research on travel service export in twelve countries from 1998 to 2018. We investigated both short-term and long-term significance of export of travel services for GDP growth in Mediterranean countries using the VAR and VECM model and the fixed-effects panel OLS model. In our analysis of significance of export of travel services on current account balance, we applied an accounting approach. Our application of the fixed-effects OLS model on the panel data with GDP growth rate as the dependent variable has shown that, in the short run, export of travel services has a positive impact on GDP growth. In the long run, Granger causality based on block exogeneity Wald tests evidenced that export of travel services has a positive impact on GDP growth, but only at the 10% significance level. Following the accounting approach in our analysis of impact of export of travel services on overall current account balance, we evidenced a strong relevance of export of travel services in achieving current account balance equilibrium.

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Section: Resultsmentioning

confidence: 96%

Section: Literature Reviewmentioning

confidence: 94%

Impact of Export of Travel Services on Current Account Balance and Growth in Mediterranean Countries

Baćović¹,

Jaćimović²,

Smolović³

2020

Prague Economic Papers

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“…Ongan (2008) confirmed the growing importance of the tourism sector in financing the CA deficit in Turkey, and identical conclusions were reached by Cetintas and Bektas (2008), Arslanturk and Atan (2012), Alp and Gene (2015), as well as Cihangir et al (2014). Celik et al (2013) found that the increase in tourism income in the period from 1984 to 2012 influenced the reduction of the BoP deficit in Turkey by 14%.…”

Section: Literature Overviewmentioning

confidence: 99%

The tourism sector as a determinant of reducing the balance of payments deficit in the Republic of Serbia

Janković¹,

Čakajac²,

Luković³

et al. 2022

Menadž u hotelijerstvu i turiz

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The importance of the tourism sector for the successful functioning of the national economy differs considerably from one country to another. Economic research has mainly dealt with the impact of tourism on economic growth, development and employment. The subject of this paper is an examination of the tourism sector as a possible factor in reducing the balance of payments deficit in the Republic of Serbia. The goal of the research is to find out to what extent the tourism sector can contribute to the correction of the disequilibrium in balance of payments of the Republic of Serbia. Secondary data analysis, comparative methods and correlation analysis were used in the research. The results of the research indicate that the decline in imports of tourist services, due to the change of direction of domestic tourist demand, can have a positive effect on the reduction of the current account deficit and, consequently, the balance of payments deficit in the Republic of Serbia.

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“…Tourism has enormous impacts on core areas of the economy, such as communication and transportation, manufacturing, agriculture, consumer product development and others. Tourism stimulates the economy's revenues, adds new jobs, optimizes the gross domestic product and improves the BOPs (Çelik et al , 2013; De Mello et al , 2002).…”

Section: Introductionmentioning

confidence: 99%

Asymmetric impact of tourism on the balance of payments in Pakistan: evidence from non-linear ARDL

Rafiq

Aamir

Nadeem

2021

JEAS

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PurposeThe aim of the paper is to determine the asymmetric impact of tourism on the deficit in the balance of payments (BOPs).Design/methodology/approachThe research uses the non-linear autoregressive distributed lag (ARDL) model to investigate the asymmetric impact of tourism on Pakistan's BOPs deficit using quarterly data from 1995 to 2019.FindingsThe finding reveals that due to the positive change in tourism, the BOPs deficit decreases by 27%, although due to the negative change in tourism, the BOPs deficit rises by 2.3%. In addition, the significance of F-statistics (10.609) confirms the existence of co-integration between tourism and the deficit in the BOPs. The Wald test confirms the asymmetric association between tourism and the deficit in the BOPs over the long term.Research limitations/implicationsIn order to improve tourism in Pakistan, policymakers must consider the following implications. First, there is a need for an adequate infrastructure that can help the tourist. Second, the Government must maintain a stable law and order situation as a whole and particularly at tourist destinations. Finally, the Government should develop tourism-friendly policies in order to boost tourism in Pakistan.Originality/valueThe research provides new evidence of the impact of tourism on the BOPs using the novel non-linear ARDL (NARDL) technique. The evidence will help policymakers to develop policies to improve tourism in order to reduce the BOPs deficit.

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Effects of the tourism industry on the balance of payments deficit

Cited by 18 publications

References 8 publications

Impact of Export of Travel Services on Current Account Balance and Growth in Mediterranean Countries

Impact of Export of Travel Services on Current Account Balance and Growth in Mediterranean Countries

The tourism sector as a determinant of reducing the balance of payments deficit in the Republic of Serbia

Asymmetric impact of tourism on the balance of payments in Pakistan: evidence from non-linear ARDL

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