Tourism, Dutch Disease and Welfare in an Open Dynamic Economy
Chi-Chur Chao
(1)
,
Bharat R. Hazari
,
Jean-Pierre Laffargue
(2)
,
Pasquale M Sgro
(3)
,
Eden S. H. Yu
(4)
Résumé
This paper examines the effects of an expansion in tourism on capital accumulation, sectoral output and resident welfare in an open economy with an externality in the traded good sector. An expansion of tourism increases the relative price of the nontraded good, improves the tertiary terms of trade and hence yields a gain in revenue. However, this increase in the relative price of nontraded goods results in a lowering of the demand for capital used in the traded sector. The subsequent de-industrialization in the traded good sector may lower resident welfare. This result is supported by numerical simulations.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Tourism, Dutch Disease and Welfare in an Open Dynamic Economy
|
Résumé |
en
This paper examines the effects of an expansion in tourism on capital accumulation, sectoral output and resident welfare in an open economy with an externality in the traded good sector. An expansion of tourism increases the relative price of the nontraded good, improves the tertiary terms of trade and hence yields a gain in revenue. However, this increase in the relative price of nontraded goods results in a lowering of the demand for capital used in the traded sector. The subsequent de-industrialization in the traded good sector may lower resident welfare. This result is supported by numerical simulations.
|
Auteur(s) |
Chi-Chur Chao
1
, Bharat R. Hazari
, Jean-Pierre Laffargue
2
, Pasquale M Sgro
3
, Eden S. H. Yu
4
1
CUHK -
The Chinese University of Hong Kong [Hong Kong]
( 93116 )
- Shatin, NT, Hong Kong SAR
- Chine
2
Développement et mondialisation
( 395114 )
- France
3
Deakin University [Burwood]
( 303399 )
- 221 Burwood Highway
Burwood VIC 3125
- Australie
4
CUHK -
City University of Hong Kong [Hong Kong]
( 32772 )
- 83 Tat Chee Avenue, Kowloon-Hong Kong
- R.A.S. chinoise de Hong Kong
|
Date de publication |
2006
|
Langue du document |
Anglais
|
Vulgarisation |
Non
|
Nom de la revue |
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Volume |
57
|
Numéro |
4
|
Page/Identifiant |
501-515
|
Domaine(s) |
|
Mots-clés |
ro
Tourism, Capital accumulation
|
DOI | 10.1111/j.1468-5876.2006.00400.x |
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