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The Impact of International Trade and Tourism Development on Quality of Life: Evidence from Turkey

Year 2021, Volume: 6 Issue: 2, 406 - 413, 30.12.2021

Abstract

This study aims to explore the impact of international trade, income distribution, economic growth, and tourism development on the quality of life for the case of Turkey, which is a member of OECD and ranks 6th in tourist arrivals, according to United Nations World Tourism Organization (UNWTO, 2020) using annual frequency dataset from 1990-2019. The present study leverages on Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), Canonical Cointegration (CCR) and Johansen Cointegration techniques. Empirical results confirm a long-term relationship between GDP, GINI coefficient, international trade, and quality of life. The analysis results do not confirm the significant effects of tourism development on the quality of life in Turkey. This study concludes that although Turkey is one of the top tourist destinations in the world, this sector does not significantly contribute to a better life of citizens living in Turkey while GDP, GINI coefficient, and international trade are found to be important drivers of life quality in Turkey. The results of this study contain essential policy implications.

References

  • Cárdenas-García, P. J., Sánchez-Rivero, M., & Pulido-Fernández, J. I. (2015). Does tourism growth influence economic development?. Journal of Travel Research, 54(2), 206-221.
  • Clarke, M. (2007). Is the Genuine Progress Indicator really genuine? Considering well-being impacts of exports and imports. International Journal of Environment, Workplace and Employment, 3(2), 91-102.
  • Croes, R., Ridderstaat, J., Bąk, M., & Zientara, P. (2021). Tourism specialization, economic growth, human development and transition economies: The case of Poland. Tourism Management, 82, 104181.
  • Croes, R., & Vanegas Sr, M. (2008). Cointegration and causality between tourism and poverty reduction. Journal of travel research, 47(1), 94-103.
  • Darmayasa, I. K., Kusuma, G. A. T., Sapta, I. K. S., & Agung, A. A. P. (2018). The Effect of Tourism Economics Towards Life Satisfaction and Its Impact on Public's Intentions to Participate in The Development of New Tourist Destinations. International Journal of Interdisciplinary Research and Innovations, 6(3), 71-94.
  • Europaen Parliament (2021), https://www.europarl.europa.eu
  • Fafurida, F., Oktavilia, S., Prajanti, S. D. W., & Maretta, Y. A. (2020). Tourism and economic development in Indonesia. International Journal of Scientific and Technology Research, 9(3), 6476-6479.
  • Fahimi, A., Saint Akadiri, S., Seraj, M., & Akadiri, A. C. (2018). Testing the role of tourism and human capital development in economic growth. A panel causality study of micro states. Tourism management perspectives, 28, 62-70.
  • Işik, C., Kasımatı, E., & Ongan, S. (2017). Analyzing the causalities between economic growth, financial development, international trade, tourism expenditure and/on the CO2 emissions in Greece. Energy Sources, Part B: Economics, Planning, and Policy, 12(7), 665-673.
  • Index Mundi (2021), Turkey GINI Index https://www.indexmundi.com/facts/turkey/indicator/SI.POV.GINI
  • Kadir, N., & Jusoff, K. (2010). The cointegration and causality tests for tourism and trade in Malaysia. International Journal of Economics and Finance, 2(1), 138-143.
  • Kim, N., Song, H., & Pyun, J. H. (2016). The relationship among tourism, poverty, and economic development in developing countries: A panel data regression analysis. Tourism Economics, 22(6), 1174-1190.
  • Köksal, C., Işik, M., & Katircioğlu, S. (2020). The role of shadow economies in ecological footprint quality: empirical evidence from Turkey. Environmental Science and Pollution Research, 27(12), 13457-13466.
  • Luo, J. M., Qiu, H., & Lam, C. F. (2016). Urbanization impacts on regional tourism development: A case study in China. Current Issues in Tourism, 19(3), 282-295.
  • OECD (2021a), Better Life Index, http://www.oecdbetterlifeindex.org/
  • OECD (2021b), Income Inequality https://data.oecd.org/inequality/income-inequality.htm
  • Park, J. Y. (1992). Canonical cointegrating regressions. Econometrica: Journal of the Econometric Society, 119-143.
  • Pedroni, P. (1996). Fully modified OLS for heterogeneous cointegrated panels and the case of purchasing power parity. Manuscript, Department of Economics, Indiana University, 5, 1-45.
  • Phillips, P. C., & Hansen, B. E. (1990). Statistical inference in instrumental variables regression with I (1) processes. The Review of Economic Studies, 57(1), 99-125.
  • Rivera, M. A. (2017). The synergies between human development, economic growth, and tourism within a developing country: An empirical model for Ecuador. Journal of destination marketing & management, 6(3), 221-232.
  • Shahbaz, M., Solarin, S. A., Azam, M., & Tiwari, A. K. (2020). Tourism-induced income distribution in Malaysia: a practical experience of a truly Asian economy. Current Issues in Tourism, 23(23), 2910-2929.
  • Sirgy, M. J., Lee, D. J., Miller, C., Littlefield, J. E., Atay, E. G. (2007). The impact of imports and exports on a country’s quality of life. Social Indicators Research, 83(2), 245-281.
  • Štreimikienė, D., & Barakauskaitė-Jakubauskienė, N. (2012). Sustainable development and quality of life in Lithuania compared to other countries. Technological and Economic Development of Economy, 18(4), 588-607.
  • TÜİK (2021), Income and Living Conditions Research https://tuikweb.tuik.gov.tr/PreHaberBultenleri.do?id=33820
  • TÜRSAB (2021), Tourist Arrivals and Tourism Income, https://www.tursab.org.tr/istatistikler/turist-sayisi-ve-turizm-geliri
  • UN (2021), United Nations 2030 Agenda, https://sdgs.un.org/2030agenda
  • UNWTO (2020), International Tourism Highlights, https://www.e-unwto.org/doi/epdf/10.18111/9789284422456
  • World Tourism Organization. (2020). International tourism arrivals could fall by 20-30% in 2020 [Press Release]. https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-03/200327 - COVID-19 Impact Assessment EN.pdf
  • Yucel, A. G. (2021). Are shocks to tourist arrivals permanent or transitory? A comprehensive analysis on the top 20 most-visited countries. Current Issues in Tourism, 24(16), 2294-2311.

Uluslararası Ticaret ve Turizm Gelişiminin Yaşam Kalitesi Üzerindeki Etkisi: Türkiye’den Kanıtlar

Year 2021, Volume: 6 Issue: 2, 406 - 413, 30.12.2021

Abstract

Bu çalışma, uluslararası ticaret, gelir dağılımı, ekonomik büyüme ve turizm gelişiminin yaşam kalitesi üzerindeki etkisini, OECD üyesi olan ve Birleşmiş Millet Dünya Turizm Örgütü raporuna göre turist sayısında 6. sırada yer alan Türkiye örneğinde, 1990-2019 yılları arasındaki yıllık veri setini kullanarak araştırmayı amaçlamaktadır. Çalışmanın metodoloji kısmında FMOLS, DOLS, CCR ve Johansen Eşbütünleşme tekniklerinden yararlanılmaktadır. Ampirik sonuçlar, GSYİH, GINI katsayısı, uluslararası ticaret ve yaşam kalitesi arasında uzun vadeli bir ilişkiyi doğrulamaktadır. Analiz sonuçları ayrıca turizm gelişiminin Türkiye'deki yaşam kalitesi üzerinde istatistiksel olarak anlamlı bir etkisi olduğunu doğrulamamaktadır. Bu çalışma, Türkiye'nin dünyadaki en önemli turistik destinasyonlardan biri olmasına rağmen, bu sektörün Türkiye'de yaşayan vatandaşların daha iyi bir yaşam sürmesine önemli ölçüde katkıda bulunmadığı ve GSYİH, gelir dağılımı ve uluslararası ticaretin yaşam kalitesinin önemli itici güçleri olduğu sonucuna varmaktadır. Bu çalışmanın sonuçları, bazı önemli politika çıkarımlarını içermektedir.

References

  • Cárdenas-García, P. J., Sánchez-Rivero, M., & Pulido-Fernández, J. I. (2015). Does tourism growth influence economic development?. Journal of Travel Research, 54(2), 206-221.
  • Clarke, M. (2007). Is the Genuine Progress Indicator really genuine? Considering well-being impacts of exports and imports. International Journal of Environment, Workplace and Employment, 3(2), 91-102.
  • Croes, R., Ridderstaat, J., Bąk, M., & Zientara, P. (2021). Tourism specialization, economic growth, human development and transition economies: The case of Poland. Tourism Management, 82, 104181.
  • Croes, R., & Vanegas Sr, M. (2008). Cointegration and causality between tourism and poverty reduction. Journal of travel research, 47(1), 94-103.
  • Darmayasa, I. K., Kusuma, G. A. T., Sapta, I. K. S., & Agung, A. A. P. (2018). The Effect of Tourism Economics Towards Life Satisfaction and Its Impact on Public's Intentions to Participate in The Development of New Tourist Destinations. International Journal of Interdisciplinary Research and Innovations, 6(3), 71-94.
  • Europaen Parliament (2021), https://www.europarl.europa.eu
  • Fafurida, F., Oktavilia, S., Prajanti, S. D. W., & Maretta, Y. A. (2020). Tourism and economic development in Indonesia. International Journal of Scientific and Technology Research, 9(3), 6476-6479.
  • Fahimi, A., Saint Akadiri, S., Seraj, M., & Akadiri, A. C. (2018). Testing the role of tourism and human capital development in economic growth. A panel causality study of micro states. Tourism management perspectives, 28, 62-70.
  • Işik, C., Kasımatı, E., & Ongan, S. (2017). Analyzing the causalities between economic growth, financial development, international trade, tourism expenditure and/on the CO2 emissions in Greece. Energy Sources, Part B: Economics, Planning, and Policy, 12(7), 665-673.
  • Index Mundi (2021), Turkey GINI Index https://www.indexmundi.com/facts/turkey/indicator/SI.POV.GINI
  • Kadir, N., & Jusoff, K. (2010). The cointegration and causality tests for tourism and trade in Malaysia. International Journal of Economics and Finance, 2(1), 138-143.
  • Kim, N., Song, H., & Pyun, J. H. (2016). The relationship among tourism, poverty, and economic development in developing countries: A panel data regression analysis. Tourism Economics, 22(6), 1174-1190.
  • Köksal, C., Işik, M., & Katircioğlu, S. (2020). The role of shadow economies in ecological footprint quality: empirical evidence from Turkey. Environmental Science and Pollution Research, 27(12), 13457-13466.
  • Luo, J. M., Qiu, H., & Lam, C. F. (2016). Urbanization impacts on regional tourism development: A case study in China. Current Issues in Tourism, 19(3), 282-295.
  • OECD (2021a), Better Life Index, http://www.oecdbetterlifeindex.org/
  • OECD (2021b), Income Inequality https://data.oecd.org/inequality/income-inequality.htm
  • Park, J. Y. (1992). Canonical cointegrating regressions. Econometrica: Journal of the Econometric Society, 119-143.
  • Pedroni, P. (1996). Fully modified OLS for heterogeneous cointegrated panels and the case of purchasing power parity. Manuscript, Department of Economics, Indiana University, 5, 1-45.
  • Phillips, P. C., & Hansen, B. E. (1990). Statistical inference in instrumental variables regression with I (1) processes. The Review of Economic Studies, 57(1), 99-125.
  • Rivera, M. A. (2017). The synergies between human development, economic growth, and tourism within a developing country: An empirical model for Ecuador. Journal of destination marketing & management, 6(3), 221-232.
  • Shahbaz, M., Solarin, S. A., Azam, M., & Tiwari, A. K. (2020). Tourism-induced income distribution in Malaysia: a practical experience of a truly Asian economy. Current Issues in Tourism, 23(23), 2910-2929.
  • Sirgy, M. J., Lee, D. J., Miller, C., Littlefield, J. E., Atay, E. G. (2007). The impact of imports and exports on a country’s quality of life. Social Indicators Research, 83(2), 245-281.
  • Štreimikienė, D., & Barakauskaitė-Jakubauskienė, N. (2012). Sustainable development and quality of life in Lithuania compared to other countries. Technological and Economic Development of Economy, 18(4), 588-607.
  • TÜİK (2021), Income and Living Conditions Research https://tuikweb.tuik.gov.tr/PreHaberBultenleri.do?id=33820
  • TÜRSAB (2021), Tourist Arrivals and Tourism Income, https://www.tursab.org.tr/istatistikler/turist-sayisi-ve-turizm-geliri
  • UN (2021), United Nations 2030 Agenda, https://sdgs.un.org/2030agenda
  • UNWTO (2020), International Tourism Highlights, https://www.e-unwto.org/doi/epdf/10.18111/9789284422456
  • World Tourism Organization. (2020). International tourism arrivals could fall by 20-30% in 2020 [Press Release]. https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-03/200327 - COVID-19 Impact Assessment EN.pdf
  • Yucel, A. G. (2021). Are shocks to tourist arrivals permanent or transitory? A comprehensive analysis on the top 20 most-visited countries. Current Issues in Tourism, 24(16), 2294-2311.
There are 29 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Article
Authors

Cihat Köksal 0000-0003-4621-7697

Publication Date December 30, 2021
Published in Issue Year 2021 Volume: 6 Issue: 2

Cite

APA Köksal, C. (2021). The Impact of International Trade and Tourism Development on Quality of Life: Evidence from Turkey. JOEEP: Journal of Emerging Economies and Policy, 6(2), 406-413.

JOEEP is published as two issues per year June and December and all publication policies and processes are conducted according to the international standards. JOEEP accepts and publishes the research articles in the fields of economics, political economy, fiscal economics, applied economics, business economics, labour economics and econometrics. JOEEP, without depending on any institution or organization, is a non-profit journal that has an International Editorial Board specialist on their fields. All “Publication Process” and “Writing Guidelines” are explained in the related title and it is expected from authors to Show a complete match to the rules. JOEEP is an open Access journal.