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Limits to Growth: Tourism and Regional Labor Migration

Author

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  • Denise Eby Konan

    () (Department of Economics, University of Hawaii Research Organization, Center for Sustainable Coastal Tourism)

Abstract

The paper provides a methodology for considering the carrying capacity and limits to growth of a labor-constrained mature tourism destination. A computable general equilibrium model is used to examine the impacts of visitor expenditure growth and labor migration on HawaiÔiÕs economy. Impacts on regional income, welfare, prices, sector-level output, and gross state product are considered under alternative migration scenarios. Labor market constraints impose limits to growth in real visitor expenditures. Labor market growth with constrained visitor demand generates falling per capita household welfare.

Suggested Citation

  • Denise Eby Konan, 2010. "Limits to Growth: Tourism and Regional Labor Migration," Working Papers 2010-14, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
  • Handle: RePEc:hae:wpaper:2010-14
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    File URL: http://www.uhero.hawaii.edu/assets/WP_2010-14.pdf
    File Function: First version, 2010
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    References listed on IDEAS

    as
    1. Harvey Cutler & Stephen Davies, 2007. "The Impact Of Specific-Sector Changes In Employment On Economic Growth, Labor Market Performance And Migration," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 935-963.
    2. Chan, Nguyen & Dung, Tran Kim & Ghosh, Madanmohan & Whalley, John, 2005. "Adjustment costs in labour markets and the distributional effects of trade liberalization: Analytics and calculations for Vietnam," Journal of Policy Modeling, Elsevier, vol. 27(9), pages 1009-1024, December.
    3. Bonham, Carl & Gangnes, Byron & Zhou, Ting, 2009. "Modeling tourism: A fully identified VECM approach," International Journal of Forecasting, Elsevier, vol. 25(3), pages 531-549, July.
    4. Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April.
    5. Konan, Denise Eby & Maskus, Keith E., 2006. "Quantifying the impact of services liberalization in a developing country," Journal of Development Economics, Elsevier, vol. 81(1), pages 142-162, October.
    6. Learmonth, D. & McGregor, P.G. & Swales, J.K. & Turner, K.R. & Yin, Y.P., 2007. "The importance of the regional/local dimension of sustainable development: An illustrative Computable General Equilibrium analysis of the Jersey economy," Economic Modelling, Elsevier, vol. 24(1), pages 15-41, January.
    7. Keshab Bhattarai & John Whalley, 1997. "The Redistributive Effects of Transfers," NBER Working Papers 6281, National Bureau of Economic Research, Inc.
    8. Gelan, Ayele, 2002. "Trade liberalisation and urban-rural linkages: a CGE analysis for Ethiopia," Journal of Policy Modeling, Elsevier, vol. 24(7-8), pages 707-738, November.
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    Cited by:

    1. Sun, Ruoyan, 2013. "Kinetics of jobs in multi-link cities with migration-driven aggregation process," Economic Modelling, Elsevier, vol. 30(C), pages 36-41.

    More about this item

    Keywords

    Computable general equilibrium model; tourism; migration; Hawaii;

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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