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Do Tourism Receipts Contribute to the Sustainability of Current Account Deficits: a Case Study of Barbados
Author(s) -
Lorde Troy,
Lowe Shane,
Francis Brian
Publication year - 2012
Publication title -
international journal of tourism research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.155
H-Index - 58
eISSN - 1522-1970
pISSN - 1099-2340
DOI - 10.1002/jtr.1907
Subject(s) - tourism , sustainability , current account , current (fluid) , economics , sustainable tourism , economy , public economics , macroeconomics , geography , exchange rate , engineering , ecology , electrical engineering , biology , archaeology
Given Barbados’ recent history of persistent current account deficits and reliance on tourism as a major source of foreign exchange and driver of the economy, this paper investigated the contribution of tourism receipts to the sustainability of Barbados’ current account deficits. Utilizing an inter‐temporal budget approach, it was found that Barbados’ current account deficits were weakly sustainable as a result of tourism's contribution, underscoring the island's dependence on the industry. Copyright © 2012 John Wiley & Sons, Ltd.