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Foreign investors versus local businesses: an urban economics model for tourist cities

✍ Scribed by Li Sheng


Book ID
102446513
Publisher
John Wiley and Sons
Year
2011
Tongue
English
Weight
154 KB
Volume
13
Category
Article
ISSN
1099-2340

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✦ Synopsis


Most economics and urban literature focuses on the economic aspects of foreign investors' impact on cities and defends their positive role in urban development. This paper takes a different approach by developing an urban economics model for tourist cities that illustrates how, when there is local underinvestment and a large infl ux of foreign labour, transnational enterprises may make their profi ts at the expense of local businesses. Therefore, it is the government's responsibility to regulate foreign investment in a way that is conducive to sustainable development. Macao is adopted as a case study.