Sgro, Pasquale M.; Chao, Chi-Chur; Hazari, Bharat R.; … - Fondazione ENI Enrico Mattei (FEEM) - 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...