This paper examines the effects of Exchange Rate Volatility on tourist flows into Turkey for the period of 1994~2012. Our results show that (i) there is a negative relationship between exchange rate volatility and tourist inflows into Turkey; (ii) there is a negative impact of the relative price ratio on the tourist flows indicating that relatively expensive places deter tourist arrivals, given the keen international competition among alternative destinations; (iii) GDP per capita at tourist origin, measured in Purchasing Power Parities, exerts positive influence on tourist flows. Our findings thus, suggest some direct policy implications: first, policy makers of a tourist destination country aiming to target potential markets for their tourist products, should, in principle, avoid markets prone to exchange rate volatility due to political and social upheavals or financial instability. Moreover, countries relying heavily on their tourism industry, should avoid using exchange rate policies for other policy objectives like international price competiveness, as these policies may end up to an exchange rate volatility that could reduce its tourism inflows substantially in the longer run.
JEL classifications: F41, L83
Higher education institutions can contribute into regional growth via the services of teaching they provide, the research activity they develop and the administration spillover effects on the local markets they operate. This paper attempts to quantify the impact of University expenditures on the regionally produced product (GDP). More specifically, we focus on the expenditure effects of the Hellenic Open University on the GDP of the thirteen Greek regions. In our analysis we distinguish between direct and indirect effects by identifying as direct effects all initial expenditures incurred by the HOU while we identify and subsequently calculate as indirect effects the increases in local output caused by the interactions of different sectors of the regional economy. For the calculation of indirect effects we use the input-output methodology. An inputoutput system shows the intermediate transactions between sectors and the primary inputs, as well as, the final demand of each sector. This is a general equilibrium system that records all the inter-sector transactions presenting a complete picture of the economy under examination and being the appropriate system to be used for calculating the total effect of University expenditure on regional GDP. Our results suggest that the economic impact of HOU is (a) significant to the Greek peripheries and its size varies across regions; (b) indirect regional effects boost the direct regional effects by 60% creating an overall size of the HOU expenses GDP multiplier by 1.6 on average. Moreover, our findings may have two straightforward policy implications that could be useful to those exercising policy making: First, the quantification of HOU economic impact on all Greek peripheries is not only useful for assessing the economic role of HOU at regional level but it could also been seen as a benchmark in assessing the impact of other similar regional educational activities. Secondly, the economic impact of HOU in each periphery can be a useful tool in assessing alternative non-educational, regional projects, aiming to fight the high unemployment arisen due to economic crisis that bedevils Greece and its peripheries in the last five years.JEL codes: I230, R110, R150
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