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The effects of the pandemic on the economy of Hawaii

Author

Listed:
  • Steven Bond-Smith

    (UHERO, University of Hawai'i at Manoa)

  • Peter Fuleky

    (UHERO and Department of Economics, University of Hawai'i at Manoa)

Abstract

The economy of Hawaii was extremely vulnerable to the COVID-19 pandemic due to its heavy reliance on tourism. This article is a thorough survey of issues affecting a tourism-dependent open economy during the COVID-19 pandemic. We provide a comprehensive analysis of the pandemic’s economic impact in Hawaii by comparing the actual outcomes during the affected period with the pre-pandemic forecast. We explain why Hawaii’s experience differed from other states, suggest reasons for a slow recovery, and discuss the pandemic’s lasting effects in the Islands. We also describe changes in the economic forecasting process necessitated by the increase in uncertainty.

Suggested Citation

  • Steven Bond-Smith & Peter Fuleky, 2022. "The effects of the pandemic on the economy of Hawaii," Working Papers 2022-4, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2022-4
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    File URL: https://uhero.hawaii.edu/wp-content/uploads/2022/09/UHEROwp2204.pdf
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    References listed on IDEAS

    as
    1. Peter Fuleky, 2022. "Nowcasting the trajectory of the COVID-19 recovery," Applied Economics Letters, Taylor & Francis Journals, vol. 29(11), pages 1037-1041, June.
    2. Eugene Tian & James Mak & PingSun Leung, 2011. "The Direct and Indirect Contributions of Tourism to Regional GDP: Hawaii," Working Papers 2011-5, University of Hawaii Economic Research Organization, University of Hawaii at Manoa, revised Sep 2011.
    3. Steven Bond-Smith, 2021. "The unintended consequences of increasing returns to scale in geographical economics [Investing for prosperity: skills, infrastructure and innovation]," Journal of Economic Geography, Oxford University Press, vol. 21(5), pages 653-681.
    4. Steven C Bond-Smith & Philip McCann, 2020. "A multi-sector model of relatedness, growth and industry clustering [Distance to frontier, selection, and economic growth]," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1145-1163.
    5. Albert Assaf & Raffaele Scuderi, 2020. "COVID-19 and the recovery of the tourism industry," Tourism Economics, , vol. 26(5), pages 731-733, August.
    6. Christopher Huckfeldt, 2022. "Understanding the Scarring Effect of Recessions," American Economic Review, American Economic Association, vol. 112(4), pages 1273-1310, April.
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    8. Ruben Juarez & Nicole Siegal & Alika Maunakea, 2022. "The effects of COVID-19 vaccine mandates in Hawaii," Working Papers 2022-1, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    9. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    10. Qiu, Richard T.R. & Park, Jinah & Li, ShiNa & Song, Haiyan, 2020. "Social costs of tourism during the COVID-19 pandemic," Annals of Tourism Research, Elsevier, vol. 84(C).
    11. Fotiadis, Anestis & Polyzos, Stathis & Huan, Tzung-Cheng T.C., 2021. "The good, the bad and the ugly on COVID-19 tourism recovery," Annals of Tourism Research, Elsevier, vol. 87(C).
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    Cited by:

    1. Steven Bond-Smith, 2024. "Diversifying Hawai‘i's Specialized Economy: A Spatial Economic Perspective," Economic Development Quarterly, , vol. 38(1), pages 40-59, February.

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