| Abstract: |
This study empirically examines aggregate tourism demand function for Turkey
using the time series data for the period 1960-2002. The total tourist
arrivals into Turkey are related to world income, relative prices and
transportation cost. We employ bounds testing cointegration procedure proposed
by Pesaran et al. (2001) to compute the short and long-run elasticities of
income, price, and transportation cost variables. We also implement CUSUM and
CUSUMSQ stability tests on the aggregate tourism demand function. The
empirical results indicate that income is the most significant variable in
explaining the total tourist arrivals to Turkey and there exists a stable
tourism demand function. |