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Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis

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  • Ceyhun Can OZCAN

    (Necmettin Erbakan University, Konya, Turkey)

  • Murat ASLAN

    (Yildirim Beyazit University, Ankara, Turkey)

  • Saban NAZLIOGLU

    (Pamukkale University, Denizli, Turkey)

Abstract

This paper examines the causal relationship between economic freedom and foreign tourist arrivals for 17 post-socialist transition countries during the period from 1996 to 2012. 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 support the evidence on (i) the neutrality between economic freedom-economic growth and between economic growth-international tourism with few exceptions and (ii) the causality from economic freedom to tourism in six out of seventeen transition economies. Post-socialist countries are still in the process of integrating into the market economic system and also the global system; and consequently, the results of the current study are heavily shaped by the historical backgrounds and also the infancy of the transition process of these nations.

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  • Ceyhun Can OZCAN & Murat ASLAN & Saban NAZLIOGLU, 2017. "Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(611), S), pages 75-98, Summer.
  • Handle: RePEc:agr:journl:v:xxiv:y:2017:i:2(611):p:75-98
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