Tourism demand and wages in a general equilibrium model of production

• Thompson, Henry ^[1]
  1. [1] Auburn University

     Auburn University

     Estados Unidos

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 22, Nº. 1, 2016, págs. 81-91
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • Rising foreign income increases tourism demand and wages if tourism is labour-intensive relative to capital. This paper adds a third factor of production, skilled labour or natural resources, to delve more deeply into the potential income redistribution in general equilibrium due to rising foreign income. In a small open economy producing tourism and an import competing good, the wage may fall in spite of the expanding tourism sector if capital is a technical complement with the third factor. A model including a traditional export is also examined, as is a specific factors version of the model. The possibility of a falling wage with expanding labour-intensive tourism relates to a number of policy issues in touristic countries.