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GTAP Resource #5048

"Enhancing GTAP with Tourism Flows and Domestic Transportation Margins"
by Martin, Shane and Everett Peterson

Transportation flows are important to all economies, and tourism flows are important to many. Despite the importance of transport and tourism in many economies, these sectors are not fully realized in the standard GTAP model. This paper builds on previous work (Peterson, 2006) to develop a version of the GTAP database and model that accounts for domestic trade margins. Further, it also includes tourism, drawing on the methods from the Monash and USAGE models (Dixon and Rimmer, 2002). The resulting model is known as GTAP-MT. In the standard GTAP model, domestic margins are not tied to any specific commodity, causing price distortions from any policy changes that specifically target transportation. Similarly, in the standard GTAP model, the domestic margins are used in fixed proportions. By relaxing both of these standard modeling structures in GTAP, GTAP-MT allows for impacts on transportation sectors, or sectors closely related to transportation (such as tourism), to be analyzed more appropriately.

For example, many island nations (Jamaica, Mauritius, Fiji, and the Bahamas) derive 30% or more of their GDP from tourism. Beyond these extreme cases, other nations, such as Austria, Mexico, Spain, Italy, and Portugal, have GDPs made up from more than 10% tourism. The paper includes a case study that illustrates conclusions that would be difficult or impossible to draw without the GTAP-MT enhancements.

Resource Details (Export Citation) GTAP Keywords
Category: 2016 Conference Paper
Status: Published
By/In: Presented at the 19th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2016
Created: Peterson, E. (4/15/2016)
Updated: Peterson, E. (4/15/2016)
Visits: 1,556
- Trade in services
- Other data bases and data issues
- The GTAP Data Base and extensions

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