EFFECTS OF TOURISM SECTOR ON THE EMPLOYMENT IN TURKEY: AN ECONOMETRIC APPLICATION

Abstract

It appears that tourism in Turkey, which is a tourism country, developed rapidly especially after 1980 and struggled to gain competitive advantage in international tourism sector. In this context, the aim of this study is to test whether there is a long-term relationship between tourism and employment, and to display the possible contribution of the sector to employment. In this paper, annual time series data regarding tourism revenues of 1980-2006 period are examined using Engle-Granger causality test, Johansen co-integration approach and error correction modeling. . The empirical findings obtained as a result of VAR indicates that tourism has a positive effect on employment while the co-integration test indicates that there is a long-term correlation between the two variables.