Productivity growth and income in the tourism sector: Role of tourism demand and human capital investment

Stauvermann, P.J. and Kumar, Ronald R. (2017) Productivity growth and income in the tourism sector: Role of tourism demand and human capital investment. Tourism Management, 61 . pp. 426-433. ISSN 0261-5177

PDF - Published Version Restricted to Repository staff only Download (408kB) | Request a copy

Abstract

This paper proposes a model for the demand for tourism in the context of a developing country. The parameters of the model are a tourist sector characterised by monopolistic competition, where human capital is the main factor of production and hotels have market power. Additionally land use is marked by demand from both agricultural and tourism sectors. From the household side, a simplified OLG approach is developed to consider consumption, human activity and the number of children. A dynamic framework is therefore identified to investigate the long-run consequences of increasing labor productivity and lowering the fertility rate. If the supply-side policy leads to economic growth, the tourism led growth hypothesis is theoretically confirmed. It is concluded that an increase in labor productivity generates positive growth effects only if the demand for tourism is elastic, otherwise negative results arise.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
Divisions:	Faculty of Business and Economics (FBE) > School of Accounting and Finance
Depositing User:	Ronald Kumar
Date Deposited:	29 Mar 2017 02:57
Last Modified:	29 Mar 2017 02:57
URI:	https://repository.usp.ac.fj/id/eprint/9687

Actions (login required)

View Item