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ORIGINAL ARTICLE
ECONOMIC DEVELOPMENT AND INTERNATIONAL AND INTERREGIONAL TOURISM
1
College of International Management, Ritsumeikan Asia Pacific University, Japan
Submission date: 2020-10-11
Acceptance date: 2020-10-27
Publication date: 2020-12-17
Economic and Regional Studies 2020;13(4):375-387
KEYWORDS
TOPICS
ABSTRACT
Subject and purpose of work: Tourism was the fastest growing industry until the outbreak of
Covid-2019. Nevertheless, there are a few studies on how the industry interacts with the rest of
economies within a comprehensive analytical framework. The main concern of this study is how
international and interregional tourism interacts with national economic development and economic
structural change. Tourism and economic growth are investigated in a multi-regional small open
economy which is perfectly competitive. Materials and methods: National economy consists of multiple regions and each region has three sectors: industry, service, and housing. Production side is the same as in the neoclassical growth theory.
Households move freely between regions, equalizing utility level between regions by selecting housing,
goods, tourism, and saving. A region’s amenity is endogenously related to the region’s population. Results: We explicitly solve the dynamics of the multi-regional economy. The system has a unique stable equilibrium point. Conclusions: We simulate the motion of the model and examine the effects of changes in the rate of
interest, foreigners’ preference for visiting a region, a region ‘s total productivity of the service sector,
domestic consumers’ preference for visiting a region, as well as the propensity to save, the propensity to
consume regional services and housing.
PEER REVIEW INFORMATION
Article has been screened for originality
iThenticate
JEL code: Z32, O41
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