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We analyze whether biodiversity is increasing the receipts of tourism and thus is beneficial for developing countries (DCs). The underlying assumption is that a rich biodiversity provides a comparative advantage for most DCs. We use a simple trade theory framework. The model is supported by an empirical analysis. The main findings are that first DCs, being abundant of biodiversity, seem to have a comparative advantage in (sustainable) tourism, that second incidence of birds as the probably best explored taxonomic group has a positive impact on inbound tourism receipts per capita, and that third the rate of endangered to total birds is negatively influencing tourism receipts. We draw some cautious policy conclusions.
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Freytag et al. (2009) studied this question.
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