IS TOURISM THE NEW DUTCH DISEASE? IMPACTS ON WAGES, SECTORIAL COMPETITIVENESS AND ECONOMIC GROWTH

This study explores the implications of tourism on wages, sectoral competitiveness, and economic growth, employing an endogenous growth model that extends [2]. The respective effects on R&D activities that spread throughout the entire economic system are analyzed by considering the concept of a potential "Dutch disease" associated with tourism. Despite existing concerns about a possible "Dutch disease" effect triggered by an increasing reliance on the tourism sector, the impact on the Portuguese economy is not definitively negative. It has promoted R&D and stimulated domestic consumption. If the R&D induced by the tourism openness of the economy is sufficiently large, it may potentially stimulate more remarkable long-term economic growth. This outcome largely depends on the Portuguese economy's ability to capitalize on idea exchange, openness, and policies that vigorously promote R&D.