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Tourism, Jobs, Capital Accumulation and the Economy: A Dynamic Analysis

Chi-Chur Chao, Bharat Hazari, Pasquale Sgro, Jean-Pierre Laffargue and Eden S.H. Yu

No 12149, Natural Resources Management Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: This paper examines the effects of tourism in a dynamic model of trade on unemployment, capital accumulation and resident welfare. A tourism boom improves the terms of trade, increases labor employment, but lowers capital accumulation. The reduction in the capital stock depends on the degree of factor intensity. When the traded sector is weakly capital intensive, the expansion of tourism improves welfare. However, when the traded sector is strongly capital intensive, the fall in capital can be a dominant factor in lowering national welfare. This dynamic immiserizing result of tourism on resident welfare is confirmed by simulations on German data.

Keywords: Resource; /Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 35
Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Working Paper: Tourism, Jobs, Capital Accumulation and the Economy: A Dynamic Analysis (2005) Downloads
Working Paper: Tourism, jobs, capital accumulation and the economy: A dynamic analysis (2005) Downloads
Working Paper: Tourism, jobs, capital accumulation and the economy: A dynamic analysis (2005) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemnr:12149

DOI: 10.22004/ag.econ.12149

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