THE EFFECTS OF GLOBALIZATION AND POLITICAL STABILITY ON TOURISM

Emrullah Mete
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Emrullah Mete: GIRESUN UNIVERSITY

Ekonomi Maliye Isletme Dergisi, 2021, vol. 4, issue 2, 170-182

Abstract: The tourism sector is a key factor for countries in order to ensure economic growth and development. In order for the tourism sector to achieve this goal, some socio-economic conditions must be present. Political stability and the level of globalization are important conditions that should exist in countries. The aim of this study is to investigate the effect of political stability and globalization on the number of tourists coming to the country. For this purpose, panel co-integration analysis was applied with the 2002-2018 data of 9 countries from the group of newly industrialized countries. In addition, the fully modified least squares (FMOLS) method was applied to estimate the long-run relationship. Globalization, political stability, price level ratio and trade openness were used as independent variables in the model. The results of the cointegration analysis show that the variables are cointegrated. According to FMOLS results, a positive and statistically significant relationship was found between political stability and globalization and the number of tourists. In addition, the relationship between the price level ratio and the number of tourists was found to be negative and significant. Finally, although the relationship between trade openness and the number of tourists is significant, it is negative.

Keywords: Political Stability; Globalization Level; Tourism; Newly Industrialized Countries (search for similar items in EconPapers)
JEL-codes: E60 O10 Z32 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:gnx:emid43:2021-4-2-1023841

DOI: 10.46737/emid.1023841

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