|Budget Amount *help
¥4,140,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥540,000)
Fiscal Year 2007: ¥2,340,000 (Direct Cost: ¥1,800,000、Indirect Cost: ¥540,000)
Fiscal Year 2006: ¥1,800,000 (Direct Cost: ¥1,800,000)
1. In order to examine the interdependence of transport technology and economic geography, we have constructed a model with a transport sector applying the theory of new economic geography. Then, we have explored the effects of spatial distribution of economic activities upon the transport technology adopted. In addition, we have studied the causal relationship in the inverse direction, that is, the effects of transport technology upon the spatial distribution of economic activities.
2. Furthermore, we have examined the inefficiency in the resource allocation arising when the transport sector has some monopoly power. Paying special attention to the fact that the size of the sector is endogenously determined, we have answered the question as to when it becomes too big and when it becomes too small.
3. Next, we have derived the price of transport service determined through the behaviors of transport firms. Here, the possibility that the price differs depending on the direction of shipment is taken into account. By further developing the model constructed in 1, we have analyzed the impacts of the changes in parameters on economic geography.
4. Putting all the results together, we have consider the overall effects of the investment of transport infrastructure upon the spatial distribution of economic activities. In particular, we have focus on the channel in which the investment affects the price of transport service by lowering the marginal cost of transport firms, which, in turn, gives an impact on economic geography.
5. Moreover, up to the extent that transport cost is considered one of trade costs, the policy to lower transport costs by the investment on transport infrastructure can be analyzed in the same framework as the policy to lower trade costs, in particular, tariffs. Thus, we have considered the conceptual relationship with the international trade theory.