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Theoretical and Applied Economics
No. 1 / 2016 (606), Spring

International trade and tourism for Mediterranean countries: A panel causality analysis

Ceyhun Can OZCAN
Necmettin Erbakan University, Konya, Turkey

Abstract. This paper examines the causal relationship between international trade and tourism for 16 Mediterranean countries period from 1995 to 2013. We employ the recently introduced panel Granger causality approach that is flexible enough to take account of both cross-country correlation and heterogeneity across the countries. The empirical results indicate the causality from export to tourism in four out of sixteen Mediterranean Economies.

Keywords: Mediterranean Countries, panel causality, International Trade, Tourism.

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