Empirical Testing of Convergence Hypothesis of International Tourism Sector

Abstract

The importance of the tourism sector has been increasing over the last 20 years across the world, since it makes a contribution, enabling developing countries converge developed countries economically. The aim of this study is to analyze whether or not there is any convergence between top ten countries, listed by World Tourism Organization, which have the largest volume of visitor arrivals, Turkey being one of these countries. To test the convergence hypothesis, the authors of the current research have generated a 15-year panel data set to apply panel unit root analysis for the period of 1995 through 2009. The results show that the convergence is justified regarding a joint unit root process. For the individual unit root process, however, it is justified only among France, Germany, China, Turkey, Malaysia, and Mexico.

DOI: http://dx.doi.org/10.5755/j01.ss.79.1.4070