THE ECONOMIC IMPACT OF FOOD IMPORT SUBSTITUTION IN THE BAHAMAS

Abstract

The total impact of tourist spending in developing countries is often reduced by varied and sometimes extensive foreign exchange leakages. The leakage through the importation of foodstuffs into the Bahamas is examined and an assessment is made of the impact on the economy of a significant reduction of these food imports. A conservative estimate is made of the extent to which domestic pro duction could substitute for current tourism sector food imports. The input-output method is used to estimate the indirect effects of the import substitution. Overall, significant net benefits are likely to accrue to the Bahamas economy in terms of output and employment.