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Tourism Promotion and Regional Development in Low-income Developing Countries


  • Kazuhiro Testu

    (Shizuoka University, Ohya, Japan.)


There are not so many papers that the economic effects of tourism are examined in a general equilibrium framework. The features of those papers are that they assume that tourism is regarded as non-tradable goods and services and that tourism is consumed by not only foreign tourists but also domestic residents. However, since our purpose of this paper is to examine the economic effects of tourism promotion on low-income developing countries, we assume that most domestic residents cannot afford to consume tourism, which is considered as a luxury good. Under such assumptions, we examine the effects of two tourism promotion policies on a developing economy. The main result we obtain is that both the policies improve the standard of living for the farmers in a rural region while they worse the standard of living for the workers who are employed in an urban region.

Suggested Citation

  • 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.
  • Handle: RePEc:pid:journl:v:45:y:2006:i:3:p:417-424

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    References listed on IDEAS

    1. 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.
    2. 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.
    3. Ronald W. Jones & Barbara J. Spencer, 1989. "Raw Materials, Processing Activities, and Protectionism," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 469-486, August.
    4. Bharat R. Hazari & J. J. Nowak, 2003. "Tourism, Taxes And Immiserization: A Trade Theoretic Analysis," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 279-287, October.
    5. Hazari, Bharat R. & A-Ng, 1993. "An analysis of tourists' consumption of non-traded goods and services on the welfare of the domestic consumers," International Review of Economics & Finance, Elsevier, vol. 2(1), pages 43-58.
    6. Bharat R. Hazari & J. J. Nowak & M. Sahli & D. Zdravevski, 2003. "Tourism And Regional Immiserization," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 269-278, October.
    7. Batra, Raveendra N & Casas, Francisco R, 1973. "Intermediate Products and the Pure Theory of International Trade: A Neo-Heckscher-Ohlin Framework," American Economic Review, American Economic Association, vol. 63(3), pages 297-311, June.
    8. Hazari, Bharat R. & Kaur, Charanjit, 1995. "Tourism and welfare in the presence of pure monopoly in the non-traded goods sector," International Review of Economics & Finance, Elsevier, vol. 4(2), pages 171-177.
    9. Marc Chesney & Bharat R. Hazari, 2003. "Illegal Migrants, Tourism And Welfare: A Trade Theoretic Approach," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 259-268, October.
    10. Diamond, J, 1977. " Tourism's Role in Economic Development: The Case Reexamined," Economic Development and Cultural Change, University of Chicago Press, vol. 25(3), pages 539-553, April.
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    More about this item


    Tourism; Regional Development; Low-income Developing Countries;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development


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