THE ROLE OF NATURAL RESOURCES IN TOURISM'S TRADE: AN APPLICATION OF HOV MODEL

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ASGHARI MARYAM; TAYEBI SEYED KOMAIL

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

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Journal: Financial Economics Year:2009 | Volume:2 | Issue:7 Page(s): 163-177

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Title

THE ROLE OF NATURAL RESOURCES IN TOURISM'S TRADE: AN APPLICATION OF HOV MODEL

Author(s)

ASGHARI MARYAM | TAYEBI SEYED KOMAIL | Issue Writer Certificate

Keywords

TOURISM

NATURAL RESOURCES

FACTOR ENDOWMENTS

HECKSCHER–OHLIN–VANEK (HOV)

OECD COUNTRIES

Abstract

TOURISM is a rapid growing phenomenon and has become one of the largest industries in the world. The impact of TOURISM is extremely varied. On one hand, TOURISM plays an important and certainly also positive role in the socioeconomic and political development in destination countries, for instance by offering new employment opportunities. TOURISM may also in certain instances contribute to a broader cultural understanding by creating an awareness respecting the diversity of cultures and ways of life. On the other hand, TOURISM as a tool to create jobs has not fulfilled its expectations. At the same time, complaints from tourist destinations concerning massive negative impacts upon environment, culture and ways of life of the residents have given rise to a demand for a more sustainable development in TOURISM.The introduction of TOURISM will imply an increased stress on resources available and the TOURISM industry is very resource-and land intensive. An influx of tourists into the area leads to a competition for resources. This competition is compounded by employees working at the tourist sites.Almost as a rule tourists are supplied at the expense of the local population.Following Leamer (1984), standard Heckscher-Ohlin-Vanek (HOV) equations incorporating measures of FACTOR ENDOWMENTS are used to explain observed trade patterns. The advantage of focusing on trade patterns is that they can be analyzed through conventional theories of comparative advantage.To test whether natural sources distort patterns of TOURISM's trade, variables representing the natural sources are added to the HOV equations and the coefficients tested for significance. We examine the relationship between FACTOR ENDOWMENTS, natural sources and TOURISM's net exports by Heckscher-Ohlin-Vanek (HOV) model in the 15 European countries.The results indicate the travel & TOURISM sector employment and energy use have negative effects, but arable land, forest area and fixed investment expenditure have positive effect on TOURISM's trade. The renewable internal freshwater resources flows' region is not significant in attracting tourists.

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APA: Copy

ASGHARI, MARYAM, & TAYEBI, SEYED KOMAIL. (2009). THE ROLE OF NATURAL RESOURCES IN TOURISM'S TRADE: AN APPLICATION OF HOV MODEL. JOURNAL OF FINANCIAL ECONOMICS (FINANCIAL ECONOMICS AND DEVELOPMENT), 2(7), 163-177. SID. https://sid.ir/paper/593030/en

Vancouver: Copy

ASGHARI MARYAM, TAYEBI SEYED KOMAIL. THE ROLE OF NATURAL RESOURCES IN TOURISM'S TRADE: AN APPLICATION OF HOV MODEL. JOURNAL OF FINANCIAL ECONOMICS (FINANCIAL ECONOMICS AND DEVELOPMENT)[Internet]. 2009;2(7):163-177. Available from: https://sid.ir/paper/593030/en

IEEE: Copy

MARYAM ASGHARI, and SEYED KOMAIL TAYEBI, “THE ROLE OF NATURAL RESOURCES IN TOURISM'S TRADE: AN APPLICATION OF HOV MODEL,” JOURNAL OF FINANCIAL ECONOMICS (FINANCIAL ECONOMICS AND DEVELOPMENT), vol. 2, no. 7, pp. 163–177, 2009, [Online]. Available: https://sid.ir/paper/593030/en

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