IDEAS home Printed from https://ideas.repec.org/a/spr/portec/v23y2024i2d10.1007_s10258-023-00243-4.html
   My bibliography  Save this article

Avoiding the Dutch Disease in tourism-led economies: reconciling tourism development and sectoral diversification

Author

Listed:
  • Federico Inchausti-Sintes

    (Universidad de Las Palmas de Gran Canaria)

Abstract

Although tourism has produced long-term growth and progress, the economic consequences of this economic specialisation, which is summarised by the paradoxical effect known as the Dutch Disease, alongside the worst financial performance in tourism-led economies as a result of the COVID-19 pandemic, indicate the need for diversification in such economies. Previous research has overwhelmingly shown that tourism development results in decreases in traditional exports, overdevelopment of services and marginalises the weight of industry in the economy. Using a theoretical dynamic general equilibrium model, this article demonstrates that the Dutch Disease can be avoided in tourism-led economies, precisely owing to tourism specialisation, and non-tourism development is possible. More importantly, non-tourism development can be achieved by simultaneously enhancing the quality of tourism-based activities to increase international competitiveness.

Suggested Citation

  • Federico Inchausti-Sintes, 2024. "Avoiding the Dutch Disease in tourism-led economies: reconciling tourism development and sectoral diversification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 23(2), pages 213-239, May.
    • Handle: RePEc:spr:portec:v:23:y:2024:i:2:d:10.1007_s10258-023-00243-4
    DOI: 10.1007/s10258-023-00243-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10258-023-00243-4
    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/s10258-023-00243-4?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.

    More about this item

    Keywords

    General equilibrium theory; Economic growth; Dutch Disease; Economic diversification; Tourism-led economies; Economic development;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

    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:portec:v:23:y:2024:i:2:d:10.1007_s10258-023-00243-4. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.