<abstract xmlns="http://www.w3.org/1999/xhtml"><p> Background: The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Objective: The purpose of this study is to introduce endogenous knowledge into a multi-country growth model with trade and tourism proposed by Zhang. The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Methods/Approach: The model is based on Arrow’s learning by doing, the Solow one-sector growth model, the Oniki-Uzawa neoclassical trade model, and the Uzawa two-sector growth model. We first build the multi-country neoclassical growth model of endogenous knowledge with international tourism. Then we show that we can follow the motion of the J - country world economy with J + 1 differential equations. Results: We simulate the motion of the three-country global economy. We carry out a comparative dynamic analysis by simulation with regard to the knowledge utilization efficiency, the efficiency of learning by doing, the propensity to save, the propensity to tour other countries, and the population. Conclusions: The global economy has a unique equilibrium.</p></abstract>

Background: The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Objective: The purpose of this study is to introduce endogenous knowledge into a multi-country growth model with trade and tourism proposed by Zhang. The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Methods/Approach: The model is based on Arrow’s learning by doing, the Solow one-sector growth model, the Oniki-Uzawa neoclassical trade model, and the Uzawa two-sector growth model. We first build the multi-country neoclassical growth model of endogenous knowledge with international tourism. Then we show that we can follow the motion of the J - country world economy with J + 1 differential equations. Results: We simulate the motion of the three-country global economy. We carry out a comparative dynamic analysis by simulation with regard to the knowledge utilization efficiency, the efficiency of learning by doing, the propensity to save, the propensity to tour other countries, and the population. Conclusions: The global economy has a unique equilibrium.

A Multi-Country Trade and Tourism with Endogenous Capital and Knowledge

Business Systems Research Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"A Multi-Country Trade and Tourism with Endogenous Capital and Knowledge"}

Background: The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows....

A Multi-Country Trade and Tourism with Endogenous Capital and Knowledge

Published Online: May 18, 2017

Page range: 71 - 91

Received: Feb 28, 2016

Accepted: Jul 19, 2016

DOI: https://doi.org/10.1515/bsrj-2017-0007

Keywords
trade pattern, tourism, knowledge accumulation, wealth accumulation, income and wealth distribution

© by Wei-Bin Zhang

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

A Multi-Country Trade and Tourism with Endogenous Capital and Knowledge

Published Online: May 18, 2017

Page range: 71 - 91

Received: Feb 28, 2016

Accepted: Jul 19, 2016

DOI: https://doi.org/10.1515/bsrj-2017-0007

Keywordstrade pattern, tourism, knowledge accumulation, wealth accumulation, income and wealth distribution

© by Wei-Bin Zhang

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
trade pattern, tourism, knowledge accumulation, wealth accumulation, income and wealth distribution