THE CAUSALITY AMONG TOURISM RELATED FACTORS AND GDP FOR EU MEMBERS

Abstract

Tourism is an important concept for the EU countries which is economically the second market in the world. The countries try to increase their tourism revenues as they contribute to the economy. International tourism is considered as a major source of exporting revenues for the EU member countries. Having too much importance in the economy, this paper aims to examine the long term and short term relationships among international tourism revenues and tourism related factors such as tourism expenditure, tourist arrivals and GDP of the EU member countries. As a methodology, Granger causality and Johansen cointegration methods are used. The panel data analysis is performed for 22 years using annual data of the EU member countries. The main findings of the tests reveal the existence of long run relationship between tourism revenue and GDP, tourism arrivals and GDP and tourism expenditure and GDP.

Keywords

• european union
• tourism
• gdp
• causality