Sgro, Pasquale M.; Chao, Chi-Chur; Hazari, Bharat R.; … - 2005
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 …