IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Tourism and economic structural change with endogenous wealth and human capital and elastic labor supply

Listed author(s):
  • Wei-Bin ZHANG

    (Ritsumeikan Asia Pacific University, Japan)

The purpose of this study is to introduce tourism to a small-open growth with endogenous wealth and human capital. We develop the model on the basis of the Solow- Uzawa growth model, Arrow's learning by doing, the literature of small-open economic growth models, and ideas from tourism economics. The economy consists of one service sector and one industrial sector. International tourists and domestic residents consume non-traded goods and services. We introduce endogenous land distribution between housing and supply of services. The production side is based on the traditional growth theories, while the household behavior is described by an alternative utility function proposed by Zhang (1993). We simulate the motion of the national economy and examine effects of changes in some parameters. The comparative dynamic analysis with regard to the rate of interest, the price elasticity of tourism, the global economic condition, the total productivities of the industrial and service sectors, the impact of tourism on human capital accumulation, and the propensity to save provides some important insights into the complexity of open economies with endogenous wealth and human capital.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://store.ectap.ro/articole/1227.pdf
Download Restriction: no

File URL: http://www.ectap.ro/articol.php?id=1227&rid=125
Download Restriction: no

Article provided by Asociatia Generala a Economistilor din Romania - AGER in its journal Theoretical and Applied Economics.

Volume (Year): XXIII (2016)
Issue (Month): 4(609), Winter (Winter)
Pages: 103-126

as
in new window

Handle: RePEc:agr:journl:v:xxiii:y:2016:i:4(609):p:103-126
Contact details of provider: Postal:
Bucharest, Calea Griviţei nr. 21, sector 1, 010702

Phone: +40 21 3 12 22 48
Fax: +40 21 3 12 97 17
Web page: http://www.asociatiaeconomistilor.ro/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Jess Benhabib & Qinglai Meng & Kazuo Nishimura, 2000. "Indeterminacy under Constant Returns to Scale in Multisector Economies," Econometrica, Econometric Society, vol. 68(6), pages 1541-1548, November.
  2. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
  3. Jean-Jacques Nowak & Mondher Sahli & Pasquale M. Sgro, 2003. "Tourism, Trade And Domestic Welfare," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 245-258, October.
  4. Kollmann, Robert, 2002. "Monetary policy rules in the open economy: effects on welfare and business cycles," Journal of Monetary Economics, Elsevier, vol. 49(5), pages 989-1015, July.
  5. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, vol. 34(7), pages 877-884.
  6. Ortigueira, Salvador & Santos, Manuel S., 2002. "Equilibrium Dynamics in a Two-Sector Model with Taxes," Journal of Economic Theory, Elsevier, vol. 105(1), pages 99-119, July.
  7. repec:hal:journl:halshs-00645346 is not listed on IDEAS
  8. Lane, Philip R., 2001. "The new open economy macroeconomics: a survey," Journal of International Economics, Elsevier, vol. 54(2), pages 235-266, August.
  9. David Throsby, 2011. "Cultural Capital," Chapters,in: A Handbook of Cultural Economics, Second Edition, chapter 20 Edward Elgar Publishing.
  10. Wei-Bin ZHANG, 2012. "Tourism And Economic Structure In A Small-Open Growth Model," Journal of Environmental Management and Tourism, ASERS Publishing, vol. 0(2), pages 76-92, December.
  11. Uy, Timothy & Yi, Kei-Mu & Zhang, Jing, 2013. "Structural change in an open economy," Journal of Monetary Economics, Elsevier, vol. 60(6), pages 667-682.
  12. Hirofumi Uzawa, 1961. "On a Two-Sector Model of Economic Growth," Review of Economic Studies, Oxford University Press, vol. 29(1), pages 40-47.
  13. Paul Shea, 2013. "Learning by Doing, Short‐sightedness and Indeterminacy," Economic Journal, Royal Economic Society, vol. 123, pages 738-763, 06.
  14. Chi-Chur Chao & Bharat R. Hazari & Jean-Pierre Laffargue & Pasquale M. Sgro & Eden S. H. Yu, 2006. "Tourism, Dutch Disease And Welfare In An Open Dynamic Economy," The Japanese Economic Review, Japanese Economic Association, vol. 57(4), pages 501-515.
  15. Jordi Galí & Tommaso Monacelli, 2005. "Monetary Policy and Exchange Rate Volatility in a Small Open Economy," Review of Economic Studies, Oxford University Press, vol. 72(3), pages 707-734.
  16. Brian R. Copeland, 2012. "Tourism And Welfare-Enhancing Export Subsidies," The Japanese Economic Review, Japanese Economic Association, vol. 63(2), pages 232-243, 06.
  17. Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Growth and Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-968, November.
  18. Koji Kitaura & Akira Yakita, 2010. "School Education, Learning-by-Doing, and Fertility in Economic Development," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 736-749, November.
  19. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
  20. Peter A. Diamond, 1965. "Disembodied Technical Change in a Two-Sector Model," Review of Economic Studies, Oxford University Press, vol. 32(2), pages 161-168.
  21. Copeland, Brian R, 1991. "Tourism, Welfare and De-industrialization in a Small Open Economy," Economica, London School of Economics and Political Science, vol. 58(232), pages 515-529, November.
  22. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 369-405.
  23. Young, Alwyn, 1993. "Invention and Bounded Learning by Doing," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 443-472, June.
  24. Ilzetzki, Ethan & Mendoza, Enrique G. & Végh, Carlos A., 2013. "How big (small?) are fiscal multipliers?," Journal of Monetary Economics, Elsevier, vol. 60(2), pages 239-254.
  25. Kollmann, Robert, 2001. "The exchange rate in a dynamic-optimizing business cycle model with nominal rigidities: a quantitative investigation," Journal of International Economics, Elsevier, vol. 55(2), pages 243-262, December.
  26. Drugeon, Jean-Pierre & Venditti, Alain, 2001. "Intersectoral external effects, multiplicities & indeterminacies," Journal of Economic Dynamics and Control, Elsevier, vol. 25(5), pages 765-787, May.
  27. Gianluca Benigno & Pierpaolo Benigno, 2003. "Price Stability in Open Economies," Review of Economic Studies, Oxford University Press, vol. 70(4), pages 743-764.
  28. Dao‐Zhi Zeng & Xiwei Zhu, 2011. "Tourism And Industrial Agglomeration," The Japanese Economic Review, Japanese Economic Association, vol. 62(4), pages 537-561, December.
  29. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
  30. Andreea Marin-Pantelescu & Gabriela Tigu, 2010. "Features of the Travel and Tourism Industry Which May Affect Pricing," Journal of Environmental Management and Tourism, ASERS Publishing, vol. 0(1), pages 8-11, June.
  31. Schubert, Stefan Franz & Brida, Juan Gabriel, 2009. "A Dynamic Model of Economic Growth in a Small Tourism Driven Economy," MPRA Paper 16737, University Library of Munich, Germany.
  32. Carmen Alvarez Albelo & Antonio Manresa, 2005. "Internal Learning By Doing And Economic Growth," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(2), pages 1-23, December.
  33. Kenneth J. Arrow, 1962. "The Economic Implications of Learning by Doing," Review of Economic Studies, Oxford University Press, vol. 29(3), pages 155-173.
  34. Nocco, Antonella, 2005. "The rise and fall of regional inequalities with technological differences and knowledge spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 542-569, September.
  35. Joseph Zeira, 1987. "Risk and Capital Accumulation in a Small Open Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 102(2), pages 265-279.
  36. J. E. Stiglitz, 1967. "A Two-Sector Two Class Model of Economic Growth," Review of Economic Studies, Oxford University Press, vol. 34(2), pages 227-238.
  37. Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, December.
  38. Chi-Chur Chao & Bharat R. Hazari & Jean-Pierre Laffargue & Eden S. H. Yu, 2009. "A Dynamic Model of Tourism, Employment and Welfare: The Case of Hong Kong," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00310514, HAL.
  39. Jacob, Marta & Florido, Carmen & Payeras, Margarita, 2014. "Knowledge production in two mature destinations," Annals of Tourism Research, Elsevier, vol. 48(C), pages 280-284.
  40. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
  41. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
  42. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:xxiii:y:2016:i:4(609):p:103-126. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marin Dinu)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.