An Investigation OfStationarity Properties Of The Turkish Tourism Income Variable

Authors : Hasan Murat ERTUĞRUL, Selim YILDIRIM, Fatih AYHAN

Pages : 37-49

Doi:10.33818/ier.336764

View : 18 | Download : 7

Publication Date : 2017-10-04

Article Type : Research Paper

Abstract :Tourism has a significant impact on economic growth as put forth by the tourism- led growth hypothesis. Turkey’s earnings from tourism were 31.5 billion dollars in 2015 according to TURKSTAT. This implies that tourism is an important industry for Turkey and has a significant impact on economy. Therefore, the question whether a policy implementation in tourism is long-lasting or not is critical for both the industry and whole economy. This study researches the persistence of policies in tourism industry, employing tourism income series for period of 2009M1-2015M12 and tests the stationarity of this series using traditional unit root tests as well as a wavelet-based unit root test developed by Fan and Gencay insert ignore into journalissuearticles values(2010);. Both seasonally adjusted and unadjusted series have been used. The empirical results point out that the traditional unit root test has a proclivity to report that tourism income series is Iinsert ignore into journalissuearticles values(1); or non-stationary. On the other hand, the wavelet-base unit root test indicates that tourism income is stationary. The empirical result of wavelet-based test implies that impact of a shock on this sector is transitory. The income in tourism industry will return more or less back to its meaning the following year.
Keywords : tourism income, unit root, wavelet