Economic Development
Tourism and Economic Development: Evidence from Mexico's Coastline presented by Ben Faber, University of California - Berkeley
Abstract:
Tourism is a fast-growing services sector in developing countries. This paper combines a rich collection of Mexican microdata with a quantitative spatial equilibrium model and a new empirical strategy to study the long-term economic consequences of tourism both locally and in the aggregate. We find that tourism causes large and significant local economic gains relative to less touristic regions that are in part driven by significant positive spillovers on manufacturing. In the aggregate, however, these local spillovers are largely offset by reductions in agglomeration economies among less touristic regions, so that the national gains from tourism are mainly driven by a classical market integration effect.
Tourism is a fast-growing services sector in developing countries. This paper combines a rich collection of Mexican microdata with a quantitative spatial equilibrium model and a new empirical strategy to study the long-term economic consequences of tourism both locally and in the aggregate. We find that tourism causes large and significant local economic gains relative to less touristic regions that are in part driven by significant positive spillovers on manufacturing. In the aggregate, however, these local spillovers are largely offset by reductions in agglomeration economies among less touristic regions, so that the national gains from tourism are mainly driven by a classical market integration effect.
| Building: | Lorch Hall |
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| Website: | |
| Event Type: | Workshop / Seminar |
| Tags: | AEM Featured, Economics, seminar |
| Source: | Happening @ Michigan from Economic Development Seminar, Department of Economics, Andrew M. Marcus Seminar in Applied Microeconomics, Department of Economics Seminars |
