Abstract ：
This study examines the effects of policy changes and improvements in the agritourism sector in a developing country. We analyze the economy of a developing country, which consists of two regions: an urban area where the manufacturing sector is located and which has a certain level of unemployment a la Harris and Todaro (1970), and a rural area where both the agricultural and agritourism sectors are located. We demonstrate that encouraging labor outflow is reasonable, while the effects of a decrease in the min-imum urban wage or the effects of additional foreign capital investment are not clear. We also assert that under certain conditions, an enhancement of the ratio of agricul-tural goods to touristic services in the agritourism sector will improve domestic welfare and reduce the urban unemployment rate. Furthermore, we conclude that agricultural-good-intensive tourism and environmentally friendly agritourism cause positive effects on welfare and employment.

Keywords : Agritourism; Urban-rural migration; Unemployment
JEL classifications: O13, O18, Q56