Economic impact of tourism in Cabo Verde: a CGE analysis

K. Ali Akkemik, Jorge Tavares Borges () and Denes Perlaky ()
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Jorge Tavares Borges: Yamaguchi University
Denes Perlaky: Yamaguchi University

International Journal of Economic Policy Studies, 2024, vol. 18, issue 1, No 7, 173-195

Abstract: Abstract Tourism, a major economic activity in Cabo Verde, contributes largely to GDP and employment. The long-run economic impact of tourism in Cabo Verde is examined using a dynamic computable general equilibrium model and simulation analyses where the demand for tourism is increased by 10%, and the tax burden is reduced by half. Results show real GDP rising above its long-run growth path by 1.31 and 1.00 percentage points in 2030 and by 0.61 and 0.47 percentage points in 2050 in the demand and supply shocks, respectively. Despite considerable leakage, these shocks lead to improvement in the primary budget balance.

Keywords: Cabo Verde; Small island developing states; Tourism; CGE (search for similar items in EconPapers)
JEL-codes: D58 L83 Z38 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s42495-023-00124-w

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