Tourism and Welfare in Sub-Saharan Africa: A Theoretical Analysis

Lein Lein Chen and John Devereux

Journal of African Economies, 1999, vol. 8, issue 2, 209-27

Abstract: Using the standard theoretical model of trade, we study the welfare effects of tourism for developing countries with particular reference to Sub-Saharan Africa. We show that tourism can reduce welfare for trade regimes dominated by export taxes or import subsidies. In addition, we argue that tourist immiserisation is possible for Sub-Saharan Africa. Finally, we show that direct foreign investment in tourism, is for the most part, beneficial. Copyright 1999 by Oxford University Press.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:oup:jafrec:v:8:y:1999:i:2:p:209-27

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