Tourism shocks, skill-biased technological change, and economic growth: A general equilibrium analysis

Abstract

This study extends the Direct Technical Change model to explore how tourism shocks influence sectoral competitiveness, wages, skill premium, technological knowledge, and economic growth. Tourism impacts the economy by reallocating labor from production to services and stimulating R&D, disproportionately benefiting skilled-labor-intensive sectors and fostering innovation. By incorporating labor dynamics and technological absorption, this study bridges gaps in existing literature, offering actionable insights for policymakers to drive sustainable and inclusive growth. Numerical simulations corroborate the theoretical findings, highlighting scenarios where R&D-driven innovation outweighs labor reallocation losses, emphasizing tourism's potential as a catalyst for innovation and long-term economic development.