Tourism, Terms of Trade and Welfare to the Poor
Bharat R Hazari, Jianjing Lin
DOI: 10.4236/tel.2011.12007   PDF    HTML     4,968 Downloads   10,601 Views   Citations


The paper investigates the impact of an increase in tourism and a change in the terms of trade on the welfare of different classes in an economy. We set up a three-sector, three-factor (one specific) model of general equilibrium to derive the results. The most important result we obtain is that tourism can immiserize the poor. In the concluding section we argue that a tax on tourism (a non-distortionary tax) should be used to subsidize the poor and restore their welfare level.

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B. Hazari and J. Lin, "Tourism, Terms of Trade and Welfare to the Poor," Theoretical Economics Letters, Vol. 1 No. 2, 2011, pp. 28-32. doi: 10.4236/tel.2011.12007.

Conflicts of Interest

The authors declare no conflicts of interest.


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