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A General Equilibrium Assessment of the Impact of a Fall in Tourism Under Alternative Closure Rules: the Case of the Balearic Islands

Author

Listed:
  • Clemente Polo

    (Universidad Autœnoma de Barcelona, Spain, clemente.polo@uab.es)

  • Elisabeth Valle

    (University of the Balearic Islands, Palma de Mallorca, Spain, elisabeth.valle@uib.es)

Abstract

A look at the 1997 input-output table shows the Balearic Islands as a service-oriented economy, highly specialized in the production of services for tourists. The main goal of this article is to evaluate with alternative multisectoral models the impact on the Balearic Islands economy of a 10 percent permanent fall in tourism demand. First, we estimate the impact of the reduction in nonresident consumption using a rather standard input-output model. Then, we estimate its effects using an extended general linear model implemented with a social accounting matrix elaborated by the authors. Finally, we use an applied (computable) general equilibrium model using alternative closure rules to those encountered in other regional studies.

Suggested Citation

  • Clemente Polo & Elisabeth Valle, 2008. "A General Equilibrium Assessment of the Impact of a Fall in Tourism Under Alternative Closure Rules: the Case of the Balearic Islands," International Regional Science Review, , vol. 31(1), pages 3-34, January.
    • Handle: RePEc:sae:inrsre:v:31:y:2008:i:1:p:3-34
    DOI: 10.1177/0160017607309448
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    References listed on IDEAS

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    Cited by:

    1. Diana Perez-Dacal & Yolanda Pena-Boquete, 2011. "Temporary Employment in Tourism Activities: Regional differences in Spain," ERSA conference papers ersa11p1811, European Regional Science Association.
    2. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    3. Clemente Polo & Elisabeth Valle, 2008. "An Assessment of the Impact of Tourism in the Balearic Islands," Tourism Economics, , vol. 14(3), pages 615-630, September.
    4. Adam Mwakalobo & Abiud Kaswamila & Alex Kira & Onesmo Chawala & Timothy Tear, 2016. "Tourism Regional Multiplier Effects in Tanzania: Analysis of Singita Grumeti Reserves Tourism in the Mara Region," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(4), pages 1-44, June.
    5. Xesús Pereira López & Melchor Fernández Fernández & André Carrascal Incera, 2016. "The Economic Impact of International Students in a Regional Economy from a Tourism Perspective," Tourism Economics, , vol. 22(1), pages 125-140, February.
    6. Álvarez-Martínez, María Teresa & Polo, Clemente, 2012. "A general equilibrium assessment of external and domestic shocks in Spain," Economic Modelling, Elsevier, vol. 29(6), pages 2486-2493.
    7. Larry Dwyer & Peter Forsyth & Ray Spurr, 2007. "Contrasting the Uses of TSAs and CGE Models: Measuring Tourism Yield and Productivity," Tourism Economics, , vol. 13(4), pages 537-551, December.
    8. Stanislav H. Ivanov & Craig Webster, 2013. "Tourism's Contribution to Economic Growth: A Global Analysis for the First Decade of the Millennium," Tourism Economics, , vol. 19(3), pages 477-508, June.
    9. Álvarez-Martínez, María, 2014. "The Effects of European Structural Funds in the Spanish Regions Using CGE Models: a review," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 129-138.
    10. Stephen Pratt, 2012. "Tourism Yield of Different Market Segments: A Case Study of Hawaii," Tourism Economics, , vol. 18(2), pages 373-391, April.
    11. Eric Tchouamou-Njoya@hs-bremen.de, 2012. "The Economic Impact of Inbound Tourism in Kenya: A CGE Analysis," EcoMod2012 3901, EcoMod.
    12. Onil Banerjee & Martin Henseler & Hélène Maisonnave & Lulit Mitik Beyene & Mercedes Velasco, 2017. "An integrated model for evaluating investments in cultural heritage tourism in the Dominican Republic," Tourism Economics, , vol. 23(8), pages 1568-1580, December.
    13. Yolanda Pena-Boquete & Diana Pérez-Dacal, 2012. "Effects of tourism development on temporality," Documentos de trabajo - Analise Economica 0047, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
    14. Juan Soulie & Elisabeth Valle, 2014. "Trade Effects of Specialization in Tourism: An Inter-Regional Input—Output Model of the Balearic Islands," Tourism Economics, , vol. 20(5), pages 961-985, October.
    15. Mohamed KARIM & Eric Tchouamou NJOYA, 2013. "Impact of Inbound Tourism in Kenyan Economy: An Analysis Using a Computable General Equilibrium Model," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(7), pages 911-932, July.
    16. Stefano Rosignoli & Enrico Conti & Alessandro Viviani, 2013. "Local Impact of Tourism: The Case of Tuscany," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(3), pages 89-109.
    17. Polo, Clemente & Valle, Elisabeth, 2011. "The Weight of Tourism in the Balearic Islands: 1983-1997-2004/El peso del turismo en las Islas Baleares: 1983-1997-2004," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 737-754, Diciembre.
    18. Stanislav Ivanov & Craig Webster, 2007. "Measuring the Impact of Tourism on Economic Growth," Tourism Economics, , vol. 13(3), pages 379-388, September.
    19. Ignacio Cazcarro & Rosa Duarte & Julio Sánchez Chóliz & Cristina Sarasa & Ana Serrano, 2016. "Modelling regional policy scenarios in the agri-food sector: a case study of a Spanish region," Applied Economics, Taylor & Francis Journals, vol. 48(16), pages 1463-1480, April.

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