TOURISM, TRADE AND WEALTH ACCUMULATION WITH ENDOGENOUS INCOME AND WEALTH DISTRIBUTION AMONG COUNTRIES

Wei-Bin Zhang

EcoForum, 2015, vol. 4, issue 1, 1

Abstract: The purpose of this study is to study dynamic interactions among economic growth, structural change, international trade and tourist flows. It builds a multi-country growth model with endogenous wealth accumulation and tourism. The model is unique in that it introduces endogenous tourism within a general dynamic equilibrium framework. The model is built on microeconomic foundations. It not only integrates the three well-known Solow growth model, Oniki-Uzawa trade model, and the Uzawa two-sector model, but also introduces tourist flows between economies for any number of national economies. After building the model, we demonstrate that the motion of the J - country world economy can be described by J differential equations. We also simulate the global economy with three countries, showing that the world dynamics has a unique equilibrium. We carry out comparative dynamic analysis with regard to one country's total productivity factor, the propensity to save, the propensity to tour other countries, and the population.

Keywords: trade pattern; tourism; services; growth; wealth accumulation; income and wealth distribution among countries. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:scm:ecofrm:v:4:y:2015:i:1:p:1

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