Arbeitspapier

Less Developed Countries, Tourism Investments and Local Economic Development

The present paper analyzes the forward linkages of a multinational's investment in a resort which kicks off tourism activity in a LDC. We show that, under quite natural assumptions, overnight stays are increasing in the number of tourism related, differentiated goods and services supplied in equilibrium. These goods and services, if supplied by the local community, represent forward linkages of FDI in tourism. We investigate the multinational's incentives to promote, reduce or eliminate these forward linkages and the effectiveness of some policy instruments available to a local government to leverage on the presence of FDI and to stimulate domestic entrepreneurship.

Language
Englisch

Bibliographic citation
Series: Quaderni - Working Paper DSE ; No. 676

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Andergassen, Rainer
Candela, Guido
Event
Veröffentlichung
(who)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(where)
Bologna
(when)
2009

DOI
doi:10.6092/unibo/amsacta/4569
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Andergassen, Rainer
  • Candela, Guido
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Time of origin

  • 2009

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