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Abstract
The relationship between internatiomal tourism and economic growth deserves further attention compared to tourism demand models over the years. This study employs the bounds test for co-integration and Granger causality tests to investigate a long-run equilibrium relationship between international tourism, higher education sector, and real income growth, and the direction of causality among themselves for the Turkish Republic of Northern Cyprus (TRNC), which is not recognized by countries other than Turkey. Results reveal that international tourism and higher education are in long-run equilibrium relationship with real income growth. The major finding of this study is that although TRNC suffers from political non-recognition and emgargoes since 1974, real income growth is stimulated by growth in international tourism and higher education sector as found from Granger causality tests.
Sažetak
Veza međunarodnog turizma i gospodarskog rasta zaslužuje daljnju pažnju u usporedbi s modelima turističke potražnje tijekom godina. Istraživanje koristi bounds test za kointegraciju i Grangerove testove kauzalnosti kako bi se istražio dugoročni odnos ravnoteže međunarodnog turizma, sektora višeg obrazovanja i rasta realnog prihoda, te pravca kauzalnosti među njima za Tursku Republiku Sjeverni Cipar (TRNC) koju u međunarodnoj zajednici priznaje samo Turska. Rezultati pokazuju da se međunarodni turizam i više obrazovanje nalaze u odnosu dugoročne ravnoteže s rastom realnog prihoda. Najznačajniji nalaz ovog istraživanja je da iako TRNC nije politički priznata i pod embargom je od 1974., rast realnog prihoda je stimuliran rastom međunarodnog turizma i sektorom višeg obrazovanja kako pokazuju Grangerovi testovi kauzalnosti.