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Specialising in Tourism and Long-term Growth

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  • Javier Capó Parrilla

    ()

  • Antoni Riera Font

    ()

  • Jaume Rosselló Nadal

    ()

Abstract

This work analyses the impact of specialising in tourism on long-term growth in the Balearic and Canary Islands (which both are economies that have been specialising in tourism for half a century), according to Solow’s methodology. The findings show that at first, investment in physical capital and the creation of infrastructures are the main impetuses for growth in production and per capita income. Nevertheless, the findings also show that productivity’s contribution to growth in production is decreasing in the long run, which becomes a curb on the development of per capita income. The behaviour of total factor productivity is not accidental; it is closely linked to specialising in tourism and determines efforts to innovate and the economy’s human capital.

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Bibliographic Info

Paper provided by Centre de Recerca Econòmica (UIB ·"Sa Nostra") in its series CRE Working Papers (Documents de treball del CRE) with number 2006/03.

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Length: 21 pages
Date of creation: Mar 2006
Date of revision: Mar 2006
Publication status: Published in 'Documents de Treball CRE', March 2006, pages 1-21
Handle: RePEc:pdm:wpaper:2006/03

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Web page: http://www.cre.sanostra.es

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Keywords: Specialising in Tourism; Economic Growth;

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