A Global Perspective: Tourism, Terms of Trade and Welfare of the Poor

The paper investigates the impact of an increase in tourism and a change in the terms of trade on the welfareofdifferentclassesinaneconomy. Wesetupathree-sector,three-factor(onespecific)model of general equilibrium to derive the results. The most important result we obtain is that tourism can immiserize the poor. In the concluding section we argue that a tax on tourism (a non-distortionary…
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July 9, 2020 0