Explanations of the variables
| Variables | Symbol | Explanation |
|---|---|---|
| International tourism, standard error of the number of arrivals | r_itr (εitr,t) | “International inbound tourists (overnight visitors) data is explained as follows by the World Bank (2019) in the World Development Indicator database: “International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on the number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead. Sources and collection methods for arrivals differ across countries. In some cases, data are from border statistics (police, immigration, and the like) and supplemented by border surveys. In other cases, data are from tourism accommodation establishments. For some countries, the number of arrivals is limited to arrivals by air and for others to arrivals staying in hotels. Some countries include arrivals of nationals residing abroad while others do not. Caution should thus be used in comparing arrivals across countries. The data on inbound tourists refer to the number of arrivals, not to the number of people traveling. Thus, a person who makes several trips to a country during a given period is counted each time as a new arrival” (The World Bank DataBank, 2020) |
| Standard error of the real effective exchange rate index (2010 = 100) | r_exc (εexc,t) | “Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs” (Central Bank of Republic of Turkey, 2020) |
| The real effective exchange rate for Turkey is calculated by considering the price deflator, but the year 2003 is taken as the base year. In this study, the base year of the mentioned data set was rearranged as 2010 |
| Variables | Symbol | Explanation |
|---|---|---|
| International tourism, standard error of the number of arrivals | r_itr (εitr,t) | “International inbound tourists (overnight visitors) data is explained as follows by the World Bank (2019) in the World Development Indicator database: “International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on the number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead. Sources and collection methods for arrivals differ across countries. In some cases, data are from border statistics (police, immigration, and the like) and supplemented by border surveys. In other cases, data are from tourism accommodation establishments. For some countries, the number of arrivals is limited to arrivals by air and for others to arrivals staying in hotels. Some countries include arrivals of nationals residing abroad while others do not. Caution should thus be used in comparing arrivals across countries. The data on inbound tourists refer to the number of arrivals, not to the number of people traveling. Thus, a person who makes several trips to a country during a given period is counted each time as a new arrival” ( |
| Standard error of the real effective exchange rate index (2010 = 100) | r_exc (εexc,t) | “Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs” ( |
| The real effective exchange rate for Turkey is calculated by considering the price deflator, but the year 2003 is taken as the base year. In this study, the base year of the mentioned data set was rearranged as 2010 |