Pi-Feng Hsieh, Su-Man Wang

(Takming University of Science and Technology, Taipei, Taiwan)

 

 

Abstract: Gambling industry is mostly regulated in the early development on account of the possible negative effects it may occur. Theoretically, a deregulated industry would lead to a more efficient allocation of economic resources in accordance with market demand. This study aims to evaluate the economic impacts of gambling liberalization in the case of Macao. The economic variables of GDP per capita, population, lands, and the government tax are investigated and the statistically significant economic growth after gambling liberalization is found in Macao. Accordingly, the economic performances are predicted to trace the continuing influences. Research results demonstrate that the casino-based economy keeps growing even during and after the economic recession.

 

 

Key words: Macao; gambling; liberalization; casino-based economy; economic impact

 

JEL codes: O4