The spillover effects of tourism receipts, political risk, real exchange rate, and trade indicators in Turkey

Alola U. V., Cop S., Adewale Alola A.

International Journal of Tourism Research, vol.21, no.6, pp.813-823, 2019 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 21 Issue: 6
  • Publication Date: 2019
  • Doi Number: 10.1002/jtr.2307
  • Journal Name: International Journal of Tourism Research
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.813-823
  • Keywords: geopolitical risk, real exchange rate, Republic of Turkey, spillover effect, tourism receipts, trade, uncertainty
  • Istanbul Gelisim University Affiliated: Yes

Abstract

In examining the spillover effects of tourism receipts and the uncertainty-induced factors in Turkey, this study examines the spillover effects of tourism receipts and related sources of uncertainties from trade- and political-related factors. Using the novelty of Diebold and Yilmaz “Better to give than to receive: Predictive directional measurement of volatility spillovers” approach, the study reveals that tourism receipts have a net spillover of 4.1%, thus indicating that the country's tourism industry received a significant shock. Spillover effects from other variables are observed, thus suggesting a hedging policy mechanism for the country's tourism sector.