THE CURRENT GROWTH EFFECT OF HEALTH TOURISM MARKET DEVELOPMENT IN TURKEY FOR THE EVALUATION ON CURRENT ACCOUNT DEFICIT

2021 ◽  
Vol 6 (11) ◽  
pp. 220-240
Author(s):  
Mustafa IŞIK ◽  
Yakup ÖZSEZER ◽  
Fikriye IŞIK
Keyword(s):  
Current Account ◽  
Current Account Deficit ◽  
National Income ◽  
Tourism Industry ◽  
Added Value ◽  
Growth Effect ◽  
Critical Threshold ◽  
Current Account Balance ◽  
Health Tourism ◽  
Tourism Sector

Tourism sector is one of the major driving forces to develop the Turkish economy which provides the positive contributions with new employment opportunities and the national income and payments. With aid of this developments in economy by tourism, it has also increased the interaction with alternative areas. Health Tourism is also one of the special areas in which provides to the country high added value and foreign currency exchange income. Since the revenue outcome by health tourism is reaching up to 100 billion dollars, the national policy of health tourism enable countries has been undertaken as a high interested point of investment needed area. The critical threshold of the country’s Gross Domestic Product (GDP) is 4 to 5 percent as a current account balance and this deficient outcome in Turkey mostly takes on 5 to 4 percent which is a considered as a critical threshold. Health Tourism is expected to play a key role in bringing the values to the positive levels and therefore the focus is becoming on this area by health sector. Developing countries such as India, Singapore, and Thailand meet their foreign trade deficits with the income where they have obtained from this specific sector and the level of growth in this sector is at certain rate every year. The health Tourism is very crucial and significant sector for such a country Turkey, who has current budget deficit, and it is real economic sense. With Covid-19 crisis, the plans related with health tourism is re-evaluated by the coordination between Turkish Ministry of Health, Ministry of Tourism and Ministry of Economy. Especially, with the infrastructure works carried for public and city hospitals has been capable of providing health tourism services within the organization which is called “USHAŞ (International Health Services)”. The health tourism sector offers significant opportunities for Turkey during Covid-19 pandemic effects on our current account deficit and the decline in economic recovery of our tourism industry and losses. With health tourism created opportunities is already in an increasing trend, to contribute to the country’s economy much faster by increasing target markets with public-private cooperation.

scholarly journals Impact of International Trade and Trade Duties on Current Account Balance of the Balance of Payment: A study of N-11 Countries

2020 ◽  
Vol 6 (1) ◽  
pp. 11-32
Author(s):  
Imtiaz Arif ◽  
Lubna Khan ◽  
Fatima Farooq ◽  
Tahir Suleman
Keyword(s):  
International Trade ◽  
Current Account ◽  
Current Account Deficit ◽  
Unit Root Test ◽  
Future Research ◽  
Current Account Balance ◽  
Test Panel ◽  
Causality Analysis ◽  
Integration Test ◽  
The Impact

This study is aimed to investigate the impact of international trade and trade duties upon the current account balance of the balance of payment of N-11 countries. Two constituents of each factor have been considered for the purpose of analysis. For International trade, import (IMPT) and export (EXPT) of goods and services have been considered whereas, for trade duties, taxes on international trade (TOIT) and customs and other import duties (CID) have been taken as the research variables whereas, current account balance (CAB) has been taken as the dependent variable. For the purpose of analysis panel data of N-11 countries for 27 years from 1990 to 2016 has been tested using different econometric technique such as Panel unit root test, Panel co-integration test, Hausman test, Panel regression analysis and Panel causality analysis. The results demonstrate that overall research variables are co-integrated and having long term relationship and affecting each other in the conventional manner. Notably, it is observed via results that in case of N-11 countries the CAB itself is the regulating factor and all other factors are adjusted according to the movement of CAB. The study provides recommendations for the rectification of current account deficit position and also provides scope for future research as well.

scholarly journals Explaining India’s current account deficit: a time series perspective

2019 ◽  
Vol 26 (1) ◽  
pp. 117-138
Author(s):  
Harendra Kumar Behera ◽  
Inder Sekhar Yadav
Keyword(s):  
Current Account ◽  
Unit Root ◽  
Current Account Deficit ◽  
Structural Break ◽  
Current Account Balance ◽  
Fiscal Deficit ◽  
Causality Test ◽  
Content Type ◽  
Financial Account ◽  
Cointegration Tests

Purpose The purpose of this paper is to examine the issue of high current account deficit (CAD) from various perspectives focussing its behaviour, financing pattern and sustainability for India. Design/methodology/approach To begin with the trends, composition and dynamics of CAD for India are analysed. Next, the influence of capital flows on current account is investigated using Granger non-causality test proposed by Toda and Yamamoto (1995) between current account balance (CAB) to GDP ratio and financial account balance to GDP ratio. Also, the sustainability of India’s current account is examined using different econometrics techniques. In particular, Husted’s (1992), Johansen’s cointegration and vector error correction model (VECM) is applied along with conducting unit root and structural break tests wherever applicable. Further, long-run and short-run determinants of the CAB are estimated using Johansen’s VECM. Findings The study found that the widening of CAD is due to fall in household financial savings and corporate investments. Also, it was found that a large part of India’s CAD has been financed by FDI and portfolio investments which are partly replaced by short-term volatile flows. The unit root and cointegration tests indicate a sustainable current account for India. Further, econometric analysis reveals that India’s current account is driven by fiscal deficit, terms of trade growth, inflation, real deposit rate, trade openness, relative income growth and the age dependency factor. Practical implications Since India’s CAD has widened and is expected to widen primarily due to rise in gold and oil imports, policy makers should focus on achieving phenomenal export growth so that a sustainable current account is maintained. Also, with rising working-age and skilled population, India should focus more on high-value product exports rather than low-value manufactured items. Further, on the structural side it is important to correct fiscal deficit as it is one of the important factors contributing to large CAD. Originality/value The paper is an important empirical contribution towards explaining India’s CAD over time using latest and comprehensive data and econometric models.

Public private partnership in Delhi Tourism – a case study of Delhi Tourism and Transport Development Corporation (DTTDC)

2015 ◽  
Vol 5 (4) ◽  
pp. 1-19
Author(s):  
Yukti Sharma ◽  
Reshma Nasreen
Keyword(s):  
Public Sector ◽  
National Income ◽  
Subject Area ◽  
Public Private Partnership ◽  
Tourism Industry ◽  
Clear Understanding ◽  
Private Partnership ◽  
Content Type ◽  
Tourism Sector

Subject area Management Strategy. Study level/applicability Management Graduates and Post-Graduates. Case overview Today, tourism is one of the fastest growing industries throughout the world. The tourism industry plays a very crucial role in the country’s economy, as it not only contributes towards the national income but also brings beneficial spillover directly or indirectly on the other industries. Tourism is the most important source of income for many emerging countries. India, a newly emerging economy, also depends, to a great extent, on tourist income. However, this sector continues to not make optimal contribution in India. In today’s competitive arena, the state tourism corporations must use all possible means to maximise growth and profitability through pegging up the rate of tourist arrivals. There is a general agreement in the tourism industry at the theoretical level about the imperative of a public – private partnership (PPP) in serving this objective. PPP aims to synergise the efforts of the two components in the general development of society and increase in competitiveness. The public–private partnership in tourism industry is at an emerging stage and could be developed in various ways. This case study highlights the key learning from Delhi Tourism’s experience on how PPP can be implemented in the tourism sector. This case study discusses an opportunity for Delhi Tourism which can alter the landscape of the tourism industry of India and also the rejuvenation of Delhi Tourism, a public sector corporation, through PPP. Expected learning outcomes The case will give a clear understanding of the dynamics and environmental factors governing a mixed economy like India. The reasons for the PPP can be analysed through the case. Students can understand the strategic choice of taking a private partner by a public sector in a very dynamic industry, i.e. the tourism sector. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

scholarly journals Structural and cyclical factors of Serbia’s current account

2018 ◽  
Vol 63 (217) ◽  
pp. 75-97 ◽  
Author(s):  
Radovan Kovacevic
Keyword(s):  
Current Account ◽  
Structural Changes ◽  
Current Account Deficit ◽  
Current Account Balance ◽  
Full Time ◽  
Structural Factors ◽  
Crisis Period ◽  
The Impact ◽  
The Current Account

This paper examines the impact of structural and cyclical factors on Serbia?s current account. We have applied several filters to turn off the long-term (structural) component and isolate the influence of cyclical factors. In this paper, we show that structural factors were more important determinants of the current account deficit in the full-time sample (1997-2016), while cyclical factors showed a stronger impact in the post-crisis period when the deficit was reduced. Although they lost their intensity during the crisis and in the post-crisis period, the structural factors determine the trend of the current account balance in the long-term. For further improvement of the current account, measures to increase exports should be taken. The structural changes of production, the wider range of support for export financing to small and medium-sized enterprises, and the application of advanced technologies in manufacturing could help to reduce the trade deficit, making the current account deficit sustainable.

scholarly journals The Relationships Between Private Pension System, Saving Rate and Current Deficit: An Application on OECD Countries

2016 ◽  
Author(s):  
Selim Başar ◽  
Murat Eren ◽  
Gürkan Bozma
Keyword(s):  
Current Account ◽  
Pension System ◽  
Developing Economies ◽  
Current Account Deficit ◽  
Oecd Countries ◽  
Private Pension ◽  
Current Account Balance ◽  
Saving Rate ◽  
Savings Rate ◽  
Private Pension System

Today developed and developing economies have many problems. Some of these problems are created by global conjuncture and the rest of them are originated by problems which can be seen in some specific economies. One of the most important problems of economies is low saving rate. Since low saving rate can cause through to inability to increase investments and inability to reduce current account deficit, to remain below potential growth. The governments which want to increase the level of savings may use the private pension system as a political tool to increase domestic savings and decrease current account deficit. In accordance with this development, the relationships between private pension system, savings rate and current account deficit have been examined by using panel causality test for 14 OECD countries over the period 2005-2014. The findings indicate that developments in the private pension system leads to improvement in the current account balance.

scholarly journals Analysis of Current Account Deficit Determinants of Balance of Payments in Fixed and Flexible Exchange Rate Regimes: A Comparative Study in CFA Franc and Non-Franc Zones

2017 ◽  
Vol 3 (3) ◽  
pp. 447
Author(s):  
Remy Hounsou
Keyword(s):  
Current Account ◽  
Current Account Deficit ◽  
Flexible Exchange Rate ◽  
Balance Of Payments ◽  
Current Account Balance ◽  
Domestic Saving ◽  
Franc Zone ◽  
Financial Variables ◽  
The Impact ◽  
The Current Account

<p><em>This study compares the impact of certain economic and financial variables on the level of the deficit in the current account of the balance of payments of the countries of the Franc zone and certain countries of the non-Franc zone situated south of the Sahara. The empirical results of the study based on panel data models covering the period 1990-2015 indicate that none of the two zones behaves better against the current account deficit of the balance of payments and that no zone is more competitive than the other. Finally, it was clear from our analysis that the variables of gross domestic, saving and the change in the terms of trade better explain the change in the current account balance in the Franc zone, whereas the variables of net foreign transfers and gross domestic saving impact the most the current account deficit in non-CFA zone.</em></p>

scholarly journals The Twin Deficits Phenomenon: Evidence from Pakistan

2000 ◽  
Vol 39 (4II) ◽  
pp. 535-550 ◽  
Author(s):  
Anjum Aqeel ◽  
Mohammed Nishat
Keyword(s):  
Fiscal Policy ◽  
Current Account ◽  
Budget Deficit ◽  
Current Account Deficit ◽  
Theoretical Work ◽  
Current Account Balance ◽  
Improved Performance ◽  
Necessary And Sufficient ◽  
The Relationship ◽  
The Current Account

Like most developing countries a steady budget deficit in Pakistan is the primary cause of all major ills of the economy. It has varied between 5.4 to 8.7 percent during last two decades. On the other hand the current account deficit varied between 2.7 to 7.2 percent during the same period. The variations in fiscal policy can lead to predictable developments in an open economy’s performance on current account, remains a controversial issue. An important aspect of this issue concerns what is termed as twin deficit analysis, according to which fiscal deficits and current account balances are very closely related so that reductions in the former are both necessary and sufficient to obtain improved performance in the later. Theoretical work on the relationship that exist between variations in fiscal policy and the current account balance has been based upon two types of models. These models are constructed from postulated behavioural relationships that purport to describe how the economy works in aggregate without explaining the behaviour of agents who make up the economy [Mundel (1963); Branson (1976); Dornbusch (1976); Kawai (1985) and Marston (1985)]. The second type of model, derives the important macroeconomic relationships from the microfoundations of individual optimising behaviour [Dixit (1978); Neary (1980); Obstfeld (1981); Persson (1982); Kimbrough (1985); Frenkel and Razin (1986); Cuddington and Vinals (1985, 1986a) and Moore (1989)]. However, both of these approaches have yielded divergent results.

The Impact of Exchange Rate on Tourism Industry

2015 ◽  
pp. 107-118
Author(s):  
Meryem Samirkaş ◽  
Mustafa Can Samirkaş
Keyword(s):  
Exchange Rate ◽  
Current Account Deficit ◽  
Tourism Industry ◽  
Factors Affecting ◽  
Currency Exchange ◽  
Currency Exchange Rates ◽  
Tourism Sector ◽  
Causality Tests ◽  
The Impact ◽  
The Relationship

Tourism sector that is increasingly important in the world economy, developing rapidly in Turkey and provides a serious contributions to country's economy because Turkey consistently has a current account deficit, tourism is an important source of income. There are many factors affecting tourism; it is clear that the industry can be affected by changes in macroeconomic variables, just like any other economic focus. In this context, it is possible that the foreign exchange rate and changes in the value of various currencies can affect tourism, especially with regards to the demands of the tourists themselves. By using the Johansen cointegration and Granger causality tests, this chapter focused on identifying the relationship between currency exchange rates and the demand for tourism in Turkey.

scholarly journals Effective Use of Foreign Debt, the Case for Turkey

2015 ◽  
Vol 3 (2) ◽  
pp. 107
Author(s):  
S. Cem Karaman
Keyword(s):  
Private Sector ◽  
Current Account ◽  
Government Spending ◽  
Current Account Deficit ◽  
Foreign Debt ◽  
Current Account Balance ◽  
Short Term ◽  
Macroeconomic Variables ◽  
Foreign Borrowing

An advanced financial system is regarded as a hallmark of development. Lending or borrowing money, or debt, plays a vital role in an economy. But just like any other economic decision, borrowing requires a thorough analysis of contingencies. Debt may lead to prosperity through sound investment, or it may overwhelm firms/people when not used properly. In today’s circumstances, borrowing from world financial markets is easier than ever before. In this paper, the possibility of foreign borrowing helping Turkey to improve its macroeconomic variables of GDP, consumption, government spending, investment, exports and current account balance is explored. We look for cointegration relationships between various foreign debt variables classified as public or private foreign debt; short-term or long-term foreign debt, and various macroeconomic variables. Later, the variables studied are tested to see if there are any statistically causal relationships between them. The following results are found: short-term foreign debt is not cointegrated with any of the macroeconomic variables when long-term foreign debt is cointegrated with some of them; private foreign debt is more effective than public foreign debt on macroeconomic variables. Whilst Turkey is critically dependent on foreign borrowing in financing its current account deficit, its current account balance is not cointegrated with any of the foreign debt data. Public foreign debt precedes government spending where private foreign debt follows private sector spending. This is interpreted as a sign that the private sector is more careful with its borrowing decisions than the government since its spending, which is procyclical with the business cycle, is leading its borrowing.

scholarly journals Balance of Payment Dynamic in Indonesia and the Structure of Economy

2018 ◽  
Vol 63 (1) ◽  
pp. 53
Author(s):  
Telisa Falianty
Keyword(s):  
Current Account ◽  
Current Account Deficit ◽  
State Space Model ◽  
Commodity Price ◽  
Current Account Balance ◽  
Financial Account ◽  
Stationarity Test ◽  
Future Policy ◽  
Balance Trade ◽  
Positive Effect

This paper will assess in aggregate and detail the trend of BOP and its component in Indonesia. Stationarity test will be employed to each component of Indonesian BOP to assess the persistency. This study will calculate the balance of payment constrained growth (BOPC) using Kalman Filter technique (state space model). The BOP, secondary income, and financial account are found to be stationer which means that the data are mean reverting. On the other hand, current account balance, trade balance, service balance, primary income, and capital account balance are unit root. This paper found the evidence of the importance of commodity price to Indonesian current account and export. Indonesian dependency on commodity-based export need to be restructured. Indonesia should also consider the side effect of FDI as a source of financing for current account deficit, without ignoring the positive effect of FDI and the volatility of portfolio investment. The persistency of primary income deficit should also become Indonesian future policy agenda.

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