GTAP Resources: Resource Display
| GTAP Resource #4649 |
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"Tourism: economic growth, employment and Dutch Disease." by Inchausti-Sintes, Federico Abstract Since 2008, Spain has sustained a significant economic recession (a 0.92% reduction in real GDP from 2008 to 2012 and an unemployment rate of 24.3% in 2012). The main causes and effects of the actual downturn situation are the following: high levels of private debt (driven by years of low interest rates, which also spurred a real estate bubble), a high unemployment rate, lower wages, low levels of private consumption, credit shrinkage (banking crisis) and higher interest rates for public bond emissions. Beyond this brief diagnosis, the Spanish crisis has two characteristic factors: Spain’s membership in the European currency union (euro) and, as a consequence, a public control deficit to fulfil the EU deficit commitment. The first factor implies that Spain acts as if it had a fixed exchange rate, forcing internal devaluation through lower salaries to earn external competitiveness. The second factor does not permit Spain to fall into persistent public budget deficits and reduces the possibility of carrying out demand policies to foster economic growth. Internal devaluation is already reducing the country’s deficit and salaries, but it is also causing domestic demand to falter. Spain, as with most of developed economies, relies strongly on the domestic demand to boost the economy. Paralleling the economic situation described above, tourism in Spain has been increasing since 2010 as a consequence of the Arab Spring that began on December of 2010 in Tunisia and rapidly spread to other Arab countries in the region. The United Nations World Tourism Organisation (United Nations World Tourism Organisation, 2013) does not share this point of view and asserts that the rise in tourism in Spain beyond the regional average (i.e., the Mediterranean area) is due to internal improvements, such as the modernisation of supply, human resource training, quality improvements and improvements in marketing and promotion. This new situation, together with more optimistic econo... |
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- Dynamic modeling - Economic crisis - Economic growth - Other data bases and data issues - Europe (Southern) |
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Last Modified: 9/15/2023 2:05:45 PM
