| Budget Amount *help |
¥4,160,000 (Direct Cost: ¥3,200,000、Indirect Cost: ¥960,000)
Fiscal Year 2022: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2021: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2020: ¥2,340,000 (Direct Cost: ¥1,800,000、Indirect Cost: ¥540,000)
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| Outline of Research at the Start |
We will derive theoretical welfare gains from trade and would compare these gains to the benchmark case of Arkolakis et al (2012). We will also derive optimal trade and industrial policies. The model will be estimated using firm-level data on Chinese and Japanese firms. Using the estimated model, we will be able to judge how much of the trade costs can be explained by the costs of shipment and inventory management. Also, the estimated model would allow us to perform counterfactual analysis: compute country-level gains/losses from elimination of tariffs observed in the data
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| Outline of Final Research Achievements |
Our study aimed to develop a comprehensive model integrating heterogeneous firms, international trade, and inventory management, estimating it using firm-level data. We successfully achieved the first objective, creating a model with desired features and deriving key theoretical results. The model's tractability is a significant advantage, providing sharp mathematical outcomes to explain economic mechanisms and compare with existing literature. This tractability also simplifies estimation and numerical analysis. We devoted substantial time to empirical work, exploring various datasets to estimate parameters and validate economic mechanisms. We worked extensively with Chinese customs data, aligning it with land prices, warehouse costs, and bills of lading. We also analyzed customs and relevant data from Denmark, Vietnam, India, Paraguay, Chile, Panama, Peru, Colombia, and Mexico. We identified suitable datasets, an estimation strategy, and a list of empirical exercises.
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| Academic Significance and Societal Importance of the Research Achievements |
Our research reveals how inventory management impacts international trade. Quantitative analysis of shipment and inventory costs informs businesses, policymakers, and economists. This understanding enhances trade policies, inventory management, and economic outcomes globally.
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