Tourism, Dutch Disease and Welfare in an Open Dynamic Economy

Chao, Chi‐Chur; Hazari, Bharat R.; Laffargue, Jean‐Pierre; Sgro, Pasquale M.; Yu, Eden S. H.

doi:10.1111/j.1468-5876.2006.00400.x

Cited by 126 publications

(104 citation statements)

References 13 publications

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“…Hence, we may be facing a case that will culminate in deindustrialisation (Chao et al, 2006;Sheng, 2011). In contrast, (Kenell, 2008) investigated the case of Thailand's increasing tourism activity, concluding that the harmful DD effects of deindustrialisation and RER appreciation did not materialise.…”

Section: Other Initial Forms Of Dutch Diseasementioning

confidence: 99%

Dutch Disease in Central and Eastern European Countries

Andrade¹,

Duarte²

2017

Core-Periphery Patterns Across the European Union

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Bulgaria, Croatia, Estonia, Latvia, Lithuania, Hungary, Poland, Czech Republic, Romania, Slovenia, and Slovakia have all benefited from an increase of European Union capital transfers of funds since the demand for European integration. At the same time, foreign direct investments have risen, mainly due to the liberalisation of capital movements. The effects of those funds and the reduction of financial costs can be considered as analogous to the phenomenon known as Dutch Disease. That is to say, the inflow of financial transfers is also considered a curse. In order to eliminate this curse we must take into account the two effects associated with Dutch Disease: the 'spending effect' and the 'resource movement effect'. Public policies have not been appropriate and have not prevented the real exchange rate appreciation, thereby contributing to a poor performance in terms of competitiveness and economic growth. After a descriptive analysis of some variables, we estimate a set of equations that take account of the direct and indirect effects of European Union funds and financial costs on the economy where the effects on the real exchange rate play the major role.JEL Classification: C01, E23, F43, H63, J31.

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Section: Other Initial Forms Of Dutch Diseasementioning

confidence: 99%

Dutch Disease in Central and Eastern European Countries

Andrade¹,

Duarte²

2017

Core-Periphery Patterns Across the European Union

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“…We get this "new insight" because our model explicitly shows transitional processes in the economic dynamics. As demonstrated by Chao et al (2006), an expansion of tourism can result in capital decumulation in a two-sector dynamic model with a capital-generating externality. Our simulation demonstrates the same conclusion without any externality.…”

Section: Comparative Dynamic Analysismentioning

confidence: 99%

A small open economic growth model with imported goods, tourism, and terms of trade

Zhang¹

2018

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A navegação consulta e descarregamento dos títulos inseridos nas Bibliotecas Digitais UC Digitalis, UC Pombalina e UC Impactum, pressupõem a aceitação plena e sem reservas dos Termos e Condições de Uso destas Bibliotecas Digitais, disponíveis em https://digitalis.uc.pt/pt-pt/termos.Conforme exposto nos referidos Termos e Condições de Uso, o descarregamento de títulos de acesso restrito requer uma licença válida de autorização devendo o utilizador aceder ao(s) documento(s) a partir de um endereço de IP da instituição detentora da supramencionada licença.Ao utilizador é apenas permitido o descarregamento para uso pessoal, pelo que o emprego do(s) título(s) descarregado(s) para outro fim, designadamente comercial, carece de autorização do respetivo autor ou editor da obra.Na medida em que todas as obras da UC Digitalis se encontram protegidas pelo Código do Direito de Autor e Direitos Conexos e demais legislação aplicável, toda a cópia, parcial ou total, deste documento, nos casos em que é legalmente admitida, deverá conter ou fazer-se acompanhar por este aviso. A small open economic growth model with imported goods, tourism, and terms of trade Autor(es):Zhang, Wei-Bin household behaviour. We build a nonlinear dynamic model with interdependence between economic growth, economic structure, tourism, prices, wealth and income. We provide a computational process to follow the motion of the economic system. Simulation is used to carry out a comparative dynamic analysis of the terms of trade, the propensity to consume imported goods, the rate of interest, the price elasticity of tourism, and the total productivity of the service sector. The comparative dynamic analysis provides some insights into the complexity of the tourism economy.

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“…This gives rise to a terms-of-trade improvement but also worsens the distortion in consumption caused by cash in advance. Chao et al (2006) examine the effects of an expansion in tourism on capital accumulation, industry output and resident welfare in an open economy with an externality in the traded good sector. They find that although an expansion of tourism increases the relative price of the non-traded good, improves the tertiary terms of trade and yields a gain in revenue, it results in a lowering of the demand for capital used in the traded sector, with a subsequent de-industrialization in the traded good sector which may lower resident welfare.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…A few studies exist on the impact of tourism on prices (and other variables, such as gross domestic product, employment and exchange rates) from a macroeconomic point of view (Hazari and Ng, 1993;Adams and Parmenter, 1995;Zhou et al, 1997;Nowak et al, 2003;Narayan, 2004;Chao et al, 2005Chao et al, , 2006. These studies rely on strong assumptions rather than on empirical results (see the 'theoretical framework' section).…”

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confidence: 99%

The Impact of Inbound Demand on Price Levels in Tourism Municipalities: Empirical Evidence from Catalonia

2011

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It is usually argued that tourism exerts negative economic impacts in host jurisdictions through the increase in prices linked to increasing demand for basic services and goods from tourists. This paper surveys 149 products in 45 tourism and non-tourism jurisdictions in Catalonia (which represent a total of 18,500 prices) in order to test empirically several hypotheses related to differences in price levels in tourism and non-tourism jurisdictions. The main results show that prices in tourism jurisdictions are not significantly higher than those in non-tourism ones. The analysis suggests that tourists are likely to pay higher prices than natives for some products.

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Tourism, Dutch Disease and Welfare in an Open Dynamic Economy

Cited by 126 publications

References 13 publications

Dutch Disease in Central and Eastern European Countries

Dutch Disease in Central and Eastern European Countries

A small open economic growth model with imported goods, tourism, and terms of trade

The Impact of Inbound Demand on Price Levels in Tourism Municipalities: Empirical Evidence from Catalonia

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Tourism, Dutch Disease and Welfare in an Open Dynamic Economy

Cited by 126 publications

References 13 publications

Dutch Disease in Central and Eastern European Countries

Dutch Disease in Central and Eastern European Countries

﻿A small open economic growth model with imported goods, tourism, and terms of trade

The Impact of Inbound Demand on Price Levels in Tourism Municipalities: Empirical Evidence from Catalonia

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Product

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A small open economic growth model with imported goods, tourism, and terms of trade