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The impact of casinos on employment across sectors in Macau

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  • Hsiao-Chuan Chang
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    Abstract

    This paper investigates a contemporary issue of Macau concerning the impact of casinos on other sectors' employment. The long-run and short-run effects are investigated using data-oriented econometric models. In the long-run, the casino boom leads to an employment expansion in other sectors. However, the effect is insignificant in the short-run. Simulations from a theoretical model disclose the pure crowding-out effect of the increased casino employment on other sectors with other things the same as the situation of 2003. During the period 2004-2008, the crowding-out effect is more serious on the non-casino service sector than on the industrial sector. Results from both types of models shed light on policy options.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.513178
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 8 (2010)
    Issue (Month): 4 ()
    Pages: 427-444

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    Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:427-444

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    Related research

    Keywords: casino industry; unit root; cointegration; error correction model; intertemporal general equilibrium model;

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