The Case of Cyprus

First of all, it is possible to say this there are two major factors that shapes economical
status of small islands. In terms of two major factors of foreign exchange for small countries,
one of them is Cyprus. The two major factors are known as international trade and
international tourism. These factors has a direct effect on economic growth of Cyprus.
However , the truth is there are two states on Cyprus ; one of them is Republic of Cyprus and
last one is Turkish Republic of Northern Cyprus, which is derecognized part of Cyprus. In
this case, most of the legal researches bases on South Cyprus. Consequently, South Cyprus is
member of EU. In terms of regulations, incentives , financal support , political situation of EU
boosts status of South Cyprus in a many ways. But the point is economic growth of Cyprus.

Many researches have prepared study on international tourism and international trade
at the past. Also, the researches still works on these major factors that how these factors are
fitted into economic growth to create competitive and stable base for small countries
especially for Cyprus. On the other hand, technological changes and political stability effects
these two factors.

International trade can be seen as import -export of goods and services and
international tourism can be seen as domestic travel agencies, international travel agencies
tour operators and tourist arrivals into the country.

The study show that some kind of statical and appliciable model which ARDL model
is. Whether these two factors are fitted into with each other and the attention is paid ,it creates
a positve boost and long term equlibilirium for economic growth of Cyprus. Consequenty,
policy makers also play big role in this.