Tourism and Industrial Agglomeration
affiliation not provided to SSRN
Zhejiang University - Center for Research of Private Economy
Japanese Economic Review, Vol. 62, Issue 4, pp. 537-561, 2011
Tourism generates considerable income and employment in host countries and regions, which substantially improves local economies. Meanwhile, the manufacturing sector remains the most important part in regional and national economies. This paper investigates their interdependence through a general‐equilibrium analysis. On the one hand, a tourism boom is pro‐industrialization because the income generated by tourism attracts more manufacturing firms and, on the other hand, de‐industrialization for attracting labour from the manufacturing sector. We clarify conditions of trade balances in three sectors. The welfare analysis clarifies conditions for the smaller country to be better off, and conditions for the equilibrium to be optimal.
Number of Pages in PDF File: 25
JEL Classification: L83, R13, R58Accepted Paper Series
Date posted: November 23, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 1.047 seconds