IDEAS home Printed from https://ideas.repec.org/a/spr/ijoeps/v18y2024i1d10.1007_s42495-023-00124-w.html
   My bibliography  Save this article

Economic impact of tourism in Cabo Verde: a CGE analysis

Author

Listed:
  • K. Ali Akkemik

    (Fukuoka University)

  • Jorge Tavares Borges

    (Yamaguchi University)

  • Denes Perlaky

    (Yamaguchi University)

Abstract

Tourism, a major economic activity in Cabo Verde, contributes largely to GDP and employment. The long-run economic impact of tourism in Cabo Verde is examined using a dynamic computable general equilibrium model and simulation analyses where the demand for tourism is increased by 10%, and the tax burden is reduced by half. Results show real GDP rising above its long-run growth path by 1.31 and 1.00 percentage points in 2030 and by 0.61 and 0.47 percentage points in 2050 in the demand and supply shocks, respectively. Despite considerable leakage, these shocks lead to improvement in the primary budget balance.

Suggested Citation

  • K. Ali Akkemik & Jorge Tavares Borges & Denes Perlaky, 2024. "Economic impact of tourism in Cabo Verde: a CGE analysis," International Journal of Economic Policy Studies, Springer, vol. 18(1), pages 173-195, February.
    • Handle: RePEc:spr:ijoeps:v:18:y:2024:i:1:d:10.1007_s42495-023-00124-w
    DOI: 10.1007/s42495-023-00124-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s42495-023-00124-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s42495-023-00124-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Akkemik, K. Ali, 2012. "Assessing the importance of international tourism for the Turkish economy: A social accounting matrix analysis," Tourism Management, Elsevier, vol. 33(4), pages 790-801.
    2. Jeremy Wood & Samuel Meng, 2021. "The economic impacts of the 2018 Winter Olympics," Tourism Economics, , vol. 27(7), pages 1303-1322, November.
    3. Ponjan, Pathomdanai & Thirawat, Nipawan, 2016. "Impacts of Thailand’s tourism tax cut: A CGE analysis," Annals of Tourism Research, Elsevier, vol. 61(C), pages 45-62.
    4. Tomás López-Guzmán & Osvaldo Borges & Mayte Hernández-Merino & José María Cerezo, 2013. "Tourism in Cape Verde: An Analysis from the Perspective of Demand," Tourism Economics, , vol. 19(3), pages 675-688, June.
    5. Clemente Polo & Elisabeth Valle, 2008. "An Assessment of the Impact of Tourism in the Balearic Islands," Tourism Economics, , vol. 14(3), pages 615-630, September.
    6. Meng, Xianming & Siriwardana, Mahinda & Pham, Tien, 2013. "A CGE assessment of Singapore's tourism policies," Tourism Management, Elsevier, vol. 34(C), pages 25-36.
    7. Wattanakuljarus, Anan & Coxhead, Ian, 2008. "Is tourism-based development good for the poor?: A general equilibrium analysis for Thailand," Journal of Policy Modeling, Elsevier, vol. 30(6), pages 929-955.
    8. Pratt, Stephen, 2015. "The economic impact of tourism in SIDS," Annals of Tourism Research, Elsevier, vol. 52(C), pages 148-160.
    9. Stephen Pratt, 2014. "A General Equilibrium Analysis of the Economic Impact of a Devaluation on Tourism: The Case of Fiji," Tourism Economics, , vol. 20(2), pages 389-405, April.
    10. Ribeiro, Manuel Alector & Pinto, Patricia & Silva, João Albino & Woosnam, Kyle M., 2017. "Residents’ attitudes and the adoption of pro-tourism behaviours: The case of developing island countries," Tourism Management, Elsevier, vol. 61(C), pages 523-537.
    11. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
    12. Adam Blake, 2009. "The Dynamics of Tourism's Economic Impact," Tourism Economics, , vol. 15(3), pages 615-628, September.
    13. Juan Gabriel Brida & Isabel Cortes-Jimenez & Manuela Pulina, 2016. "Has the tourism-led growth hypothesis been validated? A literature review," Current Issues in Tourism, Taylor & Francis Journals, vol. 19(5), pages 394-430, April.
    14. John Laing Roberts & Shyam Nath & Satya Paul & Yeti Nisha Madhoo, 2021. "Overview, Emerging Issues and a Roadmap for SIDS," Springer Books, in: John Laing Roberts & Shyam Nath & Satya Paul & Yeti Nisha Madhoo (ed.), Shaping the Future of Small Islands, edition 1, chapter 0, pages 405-416, Springer.
    15. Seyi Saint Akadiri & Taiwo Temitope Lasisi & Gizem Uzuner & Ada Chigozie Akadiri, 2020. "Examining the causal impacts of tourism, globalization, economic growth and carbon emissions in tourism island territories: bootstrap panel Granger causality analysis," Current Issues in Tourism, Taylor & Francis Journals, vol. 23(4), pages 470-484, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pratt, Stephen, 2015. "The economic impact of tourism in SIDS," Annals of Tourism Research, Elsevier, vol. 52(C), pages 148-160.
    2. Niccolò Comerio & Fernanda Strozzi, 2019. "Tourism and its economic impact: A literature review using bibliometric tools," Tourism Economics, , vol. 25(1), pages 109-131, February.
    3. Tien Duc Pham & Son Nghiem & Larry Dwyer, 2018. "The economic impacts of a changing visa fee for Chinese tourists to Australia," Tourism Economics, , vol. 24(1), pages 109-126, February.
    4. Robertico Croes & Manuel A. Rivera, 2017. "Tourism’s potential to benefit the poor," Tourism Economics, , vol. 23(1), pages 29-48, February.
    5. João-Pedro Ferreira & Bijeta Bijen Saha & Gabriel Cardoso Carrero & Jinwon Kim & Christa Court, 2023. "Impacts of red tide in peer-to-peer accommodations: A multi-regional input-output model," Tourism Economics, , vol. 29(3), pages 812-834, May.
    6. Renuka Mahadevan & Hidayat Amir & Anda Nugroho, 2017. "Regional impacts of tourism-led growth on poverty and income inequality," Tourism Economics, , vol. 23(3), pages 614-631, May.
    7. Jim McFarlane & Bligh Grant & Boyd Blackwell & Stuart Mounter, 2017. "Combining amenity with experience," Tourism Economics, , vol. 23(5), pages 1076-1095, August.
    8. Ribeiro, Manuel Alector & Pinto, Patricia & Silva, João Albino & Woosnam, Kyle M., 2017. "Residents’ attitudes and the adoption of pro-tourism behaviours: The case of developing island countries," Tourism Management, Elsevier, vol. 61(C), pages 523-537.
    9. Jean-François Hoarau, 2022. "Is international tourism responsible for the outbreak of the COVID-19 pandemic? A cross-country analysis with a special focus on small islands," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(2), pages 493-528, May.
    10. Carrascal Incera, André & Fernández, Melchor Fernández, 2015. "Tourism and income distribution: Evidence from a developed regional economy," Tourism Management, Elsevier, vol. 48(C), pages 11-20.
    11. Zhang, Jiekuan & Zhang, Yan, 2018. "Carbon tax, tourism CO2 emissions and economic welfare," Annals of Tourism Research, Elsevier, vol. 69(C), pages 18-30.
    12. Fabio Mazzola & Pietro Pizzuto & Giovanni Ruggieri, 2022. "Tourism and territorial growth determinants in insular regions: A comparison with mainland regions for some European countries (2008–2019)," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1331-1382, December.
    13. Bhattarai, Keshab & Benjasak, Chonlakan, 2021. "Growth and redistribution impacts of income taxes in the Thai Economy: A dynamic CGE analysis," The Journal of Economic Asymmetries, Elsevier, vol. 23(C).
    14. Garrod Brian & Almeida António & Machado Luiz, 2023. "Modelling of nonlinear asymmetric effects of changes in tourism on economic growth in an autonomous small-island economy," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(2), pages 154-172, December.
    15. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    16. Armindo Frias & João Cabral & à lvaro Costa, 2015. "Logistic optimization in tourism networks," ERSA conference papers ersa15p1451, European Regional Science Association.
    17. Okumus, Fevzi & Kocak, Emrah, 2023. "Tourism and economic output: Do asymmetries matter?," Annals of Tourism Research, Elsevier, vol. 100(C).
    18. Alfano, Vincenzo & De Simone, Elina & D’Uva, Marcella & Gaeta, Giuseppe Lucio, 2022. "Exploring motivations behind the introduction of tourist accommodation taxes: The case of the Marche region in Italy," Land Use Policy, Elsevier, vol. 113(C).
    19. Kumar, Nikeel Nishkar & Patel, Arvind, 2023. "Nonlinear effect of air travel tourism demand on economic growth in Fiji," Journal of Air Transport Management, Elsevier, vol. 109(C).
    20. Wenming Shi & Meifeng Luo & Mengjie Jin & Seu Keow Cheng & Kevin X. Li, 2020. "Urban–rural income disparity and inbound tourism: Spatial evidence from China," Tourism Economics, , vol. 26(7), pages 1231-1247, November.

    More about this item

    Keywords

    Cabo Verde; Small island developing states; Tourism; CGE;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijoeps:v:18:y:2024:i:1:d:10.1007_s42495-023-00124-w. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.