Tourism and Economic Development: Evidence from Mexico's Coastline

Benjamin Faber and Cecile Gaubert

No 22300, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Tourism is a fast-growing services sector in developing countries. This paper combines a rich collection of Mexican microdata with a quantitative spatial equilibrium model and a new empirical strategy to study the long-term economic consequences of tourism both locally and in the aggregate. We find that tourism causes large and significant local economic gains relative to less touristic regions that are in part driven by significant positive spillovers on manufacturing. In the aggregate, however, these local spillovers are largely offset by reductions in agglomeration economies among less touristic regions, so that the national gains from trade in tourism are mainly driven by a classical market integration effect.

JEL-codes: F15 F63 O24 (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-cse, nep-int, nep-tur and nep-ure
Note: DEV ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published as Benjamin Faber & Cecile Gaubert, 2019. "Tourism and Economic Development: Evidence from Mexico’s Coastline," American Economic Review, vol 109(6), pages 2245-2293.

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Journal Article: Tourism and Economic Development: Evidence from Mexico's Coastline (2019)
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