The Impacts of International Tourism Demand on Economic Growth of a Small Economy

Tourism Management, Vol. 32, No. 2, pp. 377-385, 2011

24 Pages Posted: 18 Jun 2009 Last revised: 14 Jun 2011

See all articles by Juan Gabriel Brida

Juan Gabriel Brida

Universidad de la República

Stefan Franz Schubert

Free University of Bozen-Bolzano

Wiston Adrián Risso

University of Siena - Department of Economics

Date Written: June 18, 2009

Abstract

This paper studies the impacts on economic growth of a small tourism driven economy caused by an increase in the growth rate of international tourism demand. We present a formal model and empirical evidence.

The ingredients of the dynamic model are a large population of intertemporally optimizing agents and an AK technology representing tourism production. The model shows that an increase in the growth of tourism demand leads to transitional dynamics with gradually increasing economic growth and increasing terms of trade. The empirical application for the case of Antigua confirms the theoretical findings.

Keywords: tourism demand, growth, economic dynamics, VEC model, Antigua and Barbuda

Suggested Citation

Brida, Juan Gabriel and Schubert, Stefan Franz and Risso, Wiston Adrián, The Impacts of International Tourism Demand on Economic Growth of a Small Economy (June 18, 2009). Tourism Management, Vol. 32, No. 2, pp. 377-385, 2011, Available at SSRN: https://ssrn.com/abstract=1421982

Juan Gabriel Brida (Contact Author)

Universidad de la República ( email )

Av. 18 de Julio
Montevideo, 1968
Uruguay

Stefan Franz Schubert

Free University of Bozen-Bolzano ( email )

Via Sernesi 1
39100 Bozen-Bolzano (BZ)
Italy
+390471013495 (Phone)

Wiston Adrián Risso

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy
00390577235058 (Phone)

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