Tourism, jobs, capital accumulation and the economy: A dynamic analysis

Chi-Chur Chao, Bharat Hazari, Jean-Pierre Laffargue, Pasquale Sgro () and Eden Yu
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Jean-Pierre Laffargue: PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, CEPREMAP - Centre pour la recherche économique et ses applications - ECO ENS-PSL - Département d'économie de l'ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres, UP1 - Université Paris 1 Panthéon-Sorbonne

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Abstract: This paper examines the effects of tourism on labor employment, capital accumulation and resident welfare for a small open economy with unemployment. 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 fall in capital would not be so severe and the expansion of tourism improves welfare. However, when the traded sector is strongly capital intensive, the fall in capital can be a dominant factor to lower welfare. This immiserizing result of tourism on resident welfare is confirmed by the German data.

Keywords: capital accumulation; welfare; employment; tourism (search for similar items in EconPapers)
Date: 2005-06
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00590811v1
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Tourism, Jobs, Capital Accumulation and the Economy: A Dynamic Analysis (2005)
Working Paper: Tourism, Jobs, Capital Accumulation and the Economy: A Dynamic Analysis (2005)
Working Paper: Tourism, jobs, capital accumulation and the economy: A dynamic analysis (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-00590811

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