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 …, the expansion of tourism improves welfare. However, when the traded sector is strongly capital intensive, the fall in …