THE USA’S INTERNATIONAL TRAVEL DEMAND AND ECONOMIC GROWTH IN TURKEY: A CAUSALITY ANALYSIS: (1990 – 2008)

This paper investigates the relationship between the USA international travel demand and Turkey’s economic growth over the period 1990-2008. A vector error correction model is employed to test for Granger causality in the presence of co integration between variables. In this study, the impact of the USA international traveler in the Turkish tourism sector is investigated and evaluated by using ADF test, Co-integration approach, and Granger Causality test. The empirical findings indicate a long-run equilibrium relationship and a further uni-directional causality between the two variables.