EXAMINING THE CAUSAL RELATIONSHIP BETWEEN TOURISM REVENUES AND FOREIGN TRADE: EXAMPLE OF OECD COUNTRY

Abstract

In today’s world, tourism is one of the largest and most dynamic sectors of foreign economic activity. The rapid and high development rates of tourism, together with the foreign exchange transfers it provides to various sectors of the economy, help the socio-economic development of countries. Accordingly, income flows related to tourism and foreign trade have a very important place in terms of countries with developed and developing economies. Especially considering the year 2020, when the Covid-19 epidemic occurred, the relations between tourism and foreign trade indicators in OECD countries during the pandemic period were examined using cointegration and causality analyzes included in econometric approaches. The results of the analysis showed that there was a decrease in tourism revenues due to the presence of restrictions during the pandemic period, therefore the causality relationship between foreign trade indicators and tourism revenues decreased in this period.