Periodic solutions and global indeterminacy in a model of sustainable tourism

Year 2017, , 89 - 97, 01.07.2017

Giovanni Bella

https://doi.org/10.24288/jttr.314591

Abstract

The impact of
tourism on economic growth and environmental degradation is one of the most
relevant debated issues. Despite the huge strand of empirical literature on the
topic, a formalized theoretical investigation of the link between tourism and
sustainable economic growth is unfortunately still lacking. To this end, and in
line with the literature on the tourist life-cycle hypothesis, we present an endogenous
growth model to study the impact of tourism activities and natural resource use
on the long run steady state. The aim is to use the principles of bifurcation
theory to gain hints on the global properties of the equilibrium, and show the
existence of irregular patterns, either indeterminate or chaotic, which
possibly suggest the emergence of a (low growth) poverty-environment trapping
region.

Keywords

Sustainable tourism, Complex dynamics, Economic growth, Poverty trap

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