Econometric Review to the Relationship between Finance and Tourism Sector

Financial development refers to the diversification of the financial instruments used to finance investments in a country and to facilitate accessibility to these financial instruments. In this context, it is thought that financial development will have a direct leverage affect on tourism industry. In this context, long-term co-integration and causality relationship between financial development and tourism revenues has been investigated by cointegration and causality tests using annual data covering 1995-2016 for Turkey. According to the results obtained from the study, it is possible to say that there is a long term co-integration relationship between financial development and tourism incomes variables. In addition, the results of the causality test show that there is a causality from financial development to tourism revenues. Causality test results show that the strongest relationship between variables is in 2011 during the period discussed in the study