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The objective of this paper is to examine the impact of number of tourists on the economic growth of Turkey. In this paper, the Vector Autoregressive (VAR) model, Augmented Dickey-Fuller, (ADF), Phillips-Perron (PP) unit root tests, Johansen cointegration and Granger causality tests were used. The data covers the period from 1963 to 2015 for the number of tourist arrivals (NT), Gross Domestic Product (GDP) and GDP growth rate (GDPGR) variables.Thus, the existence of cointegration among the variables of number of tourist arrivals, Gross Domestic Product and GDP growth rate indicates that there is a long-run relationship among these variables.The findings of Granger causality test indicate the existence of unidirectional causality from the number of tourist arrivals to GDP and GDP growth rate but not vice versa. Hence, the results are in support of tourism-led growth hypothesis for the Turkish economy rather than the growth-led tourism hypothesis.

Purpose The purpose of this paper is to examine volatility spillover from the Chinese stock market to E7 and G7 stock markets. Using the estimated results, the authors also analyze the optimal weights and optimal hedge ratios for the portfolios including stocks from E7 and G7 countries. Design/methodology/approach The authors employed generalized vector autoregressive-generalized autoregressive conditional heteroskedasticity approach, developed by Ling and McAleer (2003), in order to analyze daily data on the national stock indices. Considering the late establishment of some E7 stock markets, the sampling covers the period from 1995 through 2015. Findings The findings indicate significant volatility spillover from the Chinese stock market to E7 and G7 stock markets. In particular, the Chinese stocks highly co-move with the stocks of countries within a same geographical region. While the highest volatility spillover occurs between China and India among E7 countries, the highest volatility spillover occurs between China and Japan among G7 countries. Furthermore, the examination of optimal weights and hedge ratios suggest that investors should hold more stocks from G7 countries than E7 countries for their portfolios. Originality/value To the best of the authors’ knowledge, this is the first study which investigates the volatility spillover in the stock markets of G7 and E7 countries. Moreover, the current study contributes particularly to the existing limited literature on the Chinese stock market. Since the Chinese stock market is not fully integrated to other markets and it is subject to intense government interventions, there is a widely accepted belief that the contagion effects from the Chinese stock market to other stock markets are not influential. This view discourages and limits the prospect studies. However, the findings of this paper refute this view and indicate significant interaction among the Chinese stock market and E7 and G7 stock markets.