IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/127890.html

Tourism, takeoff and growth: A quantitative analysis of Macau

Author

Listed:
  • Chu, Angus
  • Xu, Rongxin

Abstract

This study develops an open-economy Schumpeterian growth model with endogenous takeoff to explore how tourism affects the transition of an economy from stagnation to growth. Suppose leisure preference is strong. Then, an expansion in tourism triggers an earlier takeoff and raises the transitional growth rate when tourism reliance is low, but delays takeoff and lowers the transitional growth rate when tourism reliance is high. We use cross-country panel data and find that tourism has an inverted-U effect on economic growth, consistent with our theoretical prediction. We also calibrate the model to data in Macau and find that the growth-maximizing size of the tourism-related sector is about 60% of GDP.

Suggested Citation

  • Chu, Angus & Xu, Rongxin, 2026. "Tourism, takeoff and growth: A quantitative analysis of Macau," MPRA Paper 127890, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:127890
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/127890/1/MPRA_paper_127890.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Z0 - Other Special Topics - - General

    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:pra:mprapa:127890. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.