Market structure, technology choice and trade liberalization through a formation of FTA

2019 Fiscal Year Final Research Report

• Project/Area Number: 17K03735
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Ritsumeikan University
• Principal Investigator: Nomura Ryoichi 立命館大学, 経済学部, 教授 (60465599)
• Project Period (FY): 2017-04-01 – 2020-03-31
• Keywords: FTA

Outline of Final Research Achievements

This research investigates the effect of the formation of bilateral FTA between asymmetric countries on the feasibility of multilateral free trade (MFT). Main results are as follows: (1) As compared with Cournot competition, Stackelberg competition lowers the feasibility of bilateral FTA as well as MFT; (2) Under Stackelberg competition, the formation of overlapping FTAs can act as a building block for MFT when a multilateral free trade agreement is not feasible. This result does not hold under Cournot competition. (3) Although the formation of bilateral FTA tends to encourage an adoption of new technology by member countries’ firms, it may discourage that by member countries’ firms and encourage that by non-member country’s firm.

Free Research Field

国際貿易論

Academic Significance and Societal Importance of the Research Achievements

本研究は、急増するFTAの締結が世界全体の貿易自由化を促進するか否かという重要な問題に、市場構造や技術水準といった各国が有する非対称性が及ぼす影響に関する一定の結果を示したものである。こうした点は、今後の各国の通商政策の在り方やWTOの役割を検討するうえで重要であることから、学術的にも社会的にも一定の意義を有するものと考えられる。