WEIBIN ZHANG
Ritsumeikan Asia Pacific University, Japan

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

Economic Growth with Tourism and Environmental Change WEIBIN ZHANG
International Journal of Economics Development Research (IJEDR) Vol. 1 No. 2 (2020): International Journal of Economics Development Research
Publisher : Yayasan Riset dan Pengembangan Intelektual

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37385/ijedr.v1i2.53

Abstract

The main purpose of this study is to examine dynamic interactions between economic growth, environmental change, and tourism. Although tourism is playing an increasingly important role in different economies, there are only a few theoretical models to dynamic economic and environmental issues with endogenous tourism. On the basis of the Solow-Uzawa growth model, the neoclassical growth model with environmental change, and ideas from tourism economics, we develop a three-sector growth model. The industrial and service sectors are perfectly competitive. The environment sector is financially supported by the government. We introduce taxes not only on producers, but also on consumers’ incomes from wage, land, and interest of wealth, consumption of goods and services, and housing. We simulate the motion of the national economy and examine effects of changes in some parameters. The comparative dynamic analysis with regard to the rate of interest, the price elasticity of tourism, the global economic condition, the total productivity of the service sectors, and the propensity to save provides some important insights into the complexity of open economies with endogenous wealth and environment.