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Tourism and Welfare in Sub-Saharan Africa: A Theoretical Analysis

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  • Chen, Lein Lein
  • Devereux, John

Abstract

Using the standard theoretical model of trade, we study the welfare effects of tourism for developing countries with particular reference to Sub-Saharan Africa. We show that tourism can reduce welfare for trade regimes dominated by export taxes or import subsidies. In addition, we argue that tourist immiserisation is possible for Sub-Saharan Africa. Finally, we show that direct foreign investment in tourism, is for the most part, beneficial. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Chen, Lein Lein & Devereux, John, 1999. "Tourism and Welfare in Sub-Saharan Africa: A Theoretical Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(2), pages 209-227, July.
  • Handle: RePEc:oup:jafrec:v:8:y:1999:i:2:p:209-27
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    References listed on IDEAS

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    1. Tanzi, Vito, 1986. "Fiscal Policy Responses to Exogenous Shocks in Developing Countries," American Economic Review, American Economic Association, vol. 76(2), pages 88-91, May.
    2. Lane, Philip R & Tornell, Aaron, 1996. "Power, Growth, and the Voracity Effect," Journal of Economic Growth, Springer, vol. 1(2), pages 213-241, June.
    3. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    4. Sanjeev Gupta & Kenneth M. Miranda, 1991. "Commodity Booms and Government Expenditure Responses," IMF Working Papers 91/44, International Monetary Fund.
    5. Schuknecht, Ludger, 1996. "Political Business Cycles and Fiscal Policies in Developing Countries," Kyklos, Wiley Blackwell, vol. 49(2), pages 155-170.
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    Cited by:

    1. Akama, Erick, 2016. "International tourism receipts and economic growth in Kenya 1980 -2013," MPRA Paper 78110, University Library of Munich, Germany.
    2. Iza Lej√°rraga & Peter Walkenhorst, 2013. "Economic policy, tourism trade and productive diversification," International Economics, CEPII research center, issue 135-136, pages 1-12.
    3. Bichaka Fayissa & Christian Nsiah & Badassa Tadasse, 2007. "The Impact of Tourism on Economic Growth and Development in Africa," Working Papers 200716, Middle Tennessee State University, Department of Economics and Finance.
    4. Bouzahzah, Mohamed & El Menyari, Younesse, 2013. "The relationship between international tourism and economic growth: the case of Morocco and Tunisia," MPRA Paper 44102, University Library of Munich, Germany.

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