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Productivity growth and income in the tourism sector: Role of tourism demand and human capital investment
رشد و درآمد بهره وری در بخش گردشگری: نقش تقاضای گردشگری و سرمایه گذاری انسانی-2017 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 frame
work 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.
Keywords: Elasticity | Human capital investment | OLG model | Productivity growth | Tourism demand | Developing countries |
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