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C. C. Chao, B. R. Hazari, J. P. Laf-fargue and S. H. Yu, “Is Free Trade Optimal for a Small Open Economy with Tourism?” International Trade and Economic Dynamics, Springer, 2008.

has been cited by the following article:

• TITLE: Tourism, Terms of Trade and Welfare to the Poor

  AUTHORS: Bharat R Hazari, Jianjing Lin

  KEYWORDS: Tourism, Terms of Trade, General Equilibrium, Welfare

  JOURNAL NAME: Theoretical Economics Letters, Vol.1 No.2, August 16, 2011

  ABSTRACT: 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.