Growth, Conventional Production and Tourism Specialisation: Technological Catching-up Versus Terms-of-Trade Effects
| dc.creator | Valente, Simone | |
| dc.date | 2017-04-01T17:41:31Z | |
| dc.date.accessioned | 2026-07-09T03:03:32Z | |
| dc.description | This paper extends the 'expanding-varieties' growth model in a two-countries-two-goods setup, and describes the dynamics of growth rates and terms of trade when the industry-based economy is the innovation leader, while the tourism-based economy is the follower (i.e. increases the number of intermediate inputs by readapting innovations developed abroad). Two types of transitional dynamics may exist: technological catching-up and technological falling-behind. Contrary to the standard result, technological catching-up by the follower is associated with lower growth rates with respect to the leader, whereas terms-of-trade effects guarantee positive growth differentials for the tourism-based economy when the technological gap with the leader increases over time. The underlying principle of 'increased relative demand' might explain the good economic performance observed in tourism-dependent economies. | |
| dc.identifier | doi:10.22004/ag.econ.12139 | |
| dc.identifier | https://ageconsearch.umn.edu/record/12139/files/wp050140.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/12139 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/525696 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/12139 | |
| dc.title | Growth, Conventional Production and Tourism Specialisation: Technological Catching-up Versus Terms-of-Trade Effects | |
| dc.type | Text |