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Tourism, Taxes And Immiserization: A Trade Theoretic Analysis

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  • Bharat R. Hazari
  • J. J. Nowak

Abstract

 Many countries promote tourism as a device for earning foreign exchange and promoting domestic welfare and growth. In all these countries the non-traded goods (internationally not traded) are consumed by both domestic residents and tourists. It is well known that the relative price of non-traded goods and services is determined in the local market - hence the tourist demand results in monopoly power in trade for the host country. We use a very simple two-country model to demonstrate the specific nature of the offer curve and the trade equilibrium and the difficulties of taxation. Copyright 2003 Blackwell Publishers Ltd

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Pacific Economic Review.

Volume (Year): 8 (2003)
Issue (Month): 3 (October)
Pages: 279-287

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Handle: RePEc:bla:pacecr:v:8:y:2003:i:3:p:279-287

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Cited by:
  1. Shi, Hui, 2012. "The efficiency of government promotion of inbound tourism: The case of Australia," Economic Modelling, Elsevier, vol. 29(6), pages 2711-2718.
  2. Ratbek Dzhumashev & Jaai Parasnis, 2011. "Taxation and Migration: Policies to Manage a Resource Boom," Development Research Unit Working Paper Series 33-11, Monash University, Department of Economics.
  3. Cheng, Ka Ming & Kim, Hyeongwoo & Thompson, Henry, 2009. "The Exchange Rate and US Tourism Balance of Trade," MPRA Paper 18318, University Library of Munich, Germany.
  4. Kazuhiro Testu, 2006. "Tourism Promotion and Regional Development in Low-income Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 417-424.

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