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by the export sector is spent and re-spent locally, thereby creating addi-
tional jobs through the multiplier effect. The size of the multiplier is
determined by the degree to which individuals spend money in the local
economy. With tourism being an export, as seen in Chapter 3, there
have been numerous studies conducted on tourism multipliers.
(3) The supply side models of economic growth developed out of the criti-
cisms of the demand side approaches such as the export-base theory of
growth. Supply side growth theories state that growth occurs in a
region due to an increase in the supply of resources available, or because
existing resources are used more efficiently. Important determinants of
supply include intermediary inputs and primary factors such as land,
labour, capital and entrepreneurship.
While there are criticisms of both supply and demand-based models, what is
important to keep in mind is the extent that development can generate
growth throughout a region. At a broader scale, the trickle-down theory
suggests that overall growth in gross national product and income per capita
would bring benefits (or would trickle down) to the masses in the form of
job creation and other economic opportunities (Todaro, 1997). Within the
context of tourism, one option governments have used to establish the
trickle-down effect is by creating new resort complexes in hopes that eco-
nomic linkages would spread throughout the region.
Table 5.2 highlights early influential regional economic growth theorists
who acknowledge not only growth impulses for regional development but
also the resulting regional inequalities which can occur. The core-periphery
dichotomy or dualism is one of the main metaphors of regional development.
From an economic perspective, the core is a set of regions where complexity,
technology and control are considered the norm and strong linkages to other
nodes and the global system are common. The global system marks deep
disparities between the core and periphery not only between nations but also
between regions within nations (Malecki, 1997). In the context of develop-
ing countries, dualism may be more appropriate, especially as it applies to the
linkages between the formal and informal economies (Malecki, 1997).
Dualism is the coexistence in one place of two situations that are mutually
exclusive to different groups. Examples include extreme poverty and afflu-
ence, modern and traditional sectors and growth and stagnation (Todaro,
1997). Myrdal's (1963) discussion of backwash effects and Friedman's (1966)
centre-periphery model both mention the regional inequalities which can
result from economic development.
Innovation, growth poles, agglomeration economies and clusters are
linked to regional development. Schumpeter (1949) argues that for develop-
ment to occur, ideas have to produce innovations or new combinations of
productive means. This can include the introduction of a new good or a
quality of good, the opening of a new market, the introduction of a new
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