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Periodical article | Leiden University catalogue | WorldCat |
Title: | Tourism and Welfare in Sub-Saharan Africa: A Theoretical Analysis |
Authors: | Chen, Lein Lein Devereux, John |
Year: | 1999 |
Periodical: | Journal of African Economies |
Volume: | 8 |
Issue: | 2 |
Period: | July |
Pages: | 209-227 |
Language: | English |
Geographic term: | Subsaharan Africa |
Subjects: | wealth tourism Economics and Trade Development and Technology |
External link: | https://jae.oxfordjournals.org/content/8/2/209.full.pdf |
Abstract: | Using the standard general equilibrium model of trade, this paper examines the welfare effects of tourism for developing countries with particular reference to sub-Saharan Africa. It shows that for most developing economies, tourism exports are welfare improving as tourism increases welfare with import restrictions and export subsidies. Moreover, this result holds with quantitative restrictions and foreign investment in tourism. There are, however, circumstances where tourists may reduce welfare that warrant attention for sub-Saharan Africa. Welfare reduction occurs when tourism worsens the trade distortions associated with export restrictions and import subsidies that dominate the trade regimes of these economies. Thus, it is by no means clear that tourists are a boon to Africa with current trade regimes. Finally, the paper shows that direct foreign investment in tourism is, for the most part, beneficial. App., bibliogr., notes, ref., sum. |