Abstract ：
This study examines the effects of policy changes and improvements in the agritourism sector in a developed country with free trade and capital movement. The country comprises two regions: an urban area where the manufacturing sector is located, and a rural area where both the agricultural and agritourism sectors are located. We consider free labor mobility between the two areas and the structural, frictional unemployment in the urban area. We demonstrate that if agritourism is environmentally friendly and the domestic preference for manufactured goods is sufficiently large, labor inflow to this country, a reduction in the ratio of agricultural goods to touristic services in the agritourism sector, an enhancement of labor productivity in the tourism sector, and technological improvements related to environmental protection in either the manufacturing or agritourism sector will enhance the natural environment, the rural wage rate, and domestic welfare, and will reduce the urban unemployment rate and urban–rural wage gap.

Keywords : Agritourism, Urban–rural migration, Unemployment
JEL Classification : O13, O18, Q56