2007 Fiscal Year Final Research Report Summary
Economic Development of China and Trade Policies of Japan and China in East-Asia : CGE Analyses for International Division of Labor
| Project/Area Number |
18530174
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Applied economics
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| Research Institution | Kyoto Sangyo University (2007)
Kobe University (2006) |
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Principal Investigator |
IGAWA Kazuhiro Kyoto Sangyo University, Faculty of Economics, Professor (80031392)
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| Co-Investigator(Kenkyū-buntansha) |
LEE Hakuyu (LEE Hiro) Osaka University, School of International Public Policy, Professor (40283460)
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| Project Period (FY) |
2006 – 2007
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| Keywords | economic development of China / dvnamic multi-country CGE model / international division of labor in East Asia / economic integration in East Asia |
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| Research Abstract |
Our research focused on the three points, characteristics of economic development in China, trade policies in East Asia, and CGE analyses. It could be divided into the follows.
1. Theoretical modes for economic development of China were made and a framework of East-Asia community was investigated. The economic disparity between advanced coastal area and under-developed inland area was introduced in the model and scenarios of patterns for industrial concentration and separation, depending on economic developments, were made clear. The recent feature of international division of labor in East Asia is the triangle trade, Japan/Korea/Taiwan export core parts to China/ASEAN, and these export final products to SU/EU. Important roles of segmentation in business firms were investigated in our theoretical analyses and it is made clear that the new structure international division of labor in East Asia could be explained using concepts of scale economy and economy of scope. It was also investigated about difference in frameworks of ASEAN+3 and ASEAN+3+3, and discussed about their strategic importance for East-Asia community.
2. CGE (Computable general Equilibrium) models are used to evaluate quantitatively a progress of economic integration in East-Asia. Comparative analysis to the economic integration in EU was made to clarify the differences between the two regions. The existing dynamic CGE model was revised to cope with characteristics of developing China. The revised model was used to evaluate progress of trade/investment connection among East Asia, and between East-Asia and US or EU. It was found that wider FTA of ASEAN+3 requires less structural adjustments than the cases of smaller FTA as ASEA + China or ASEAN + Korea. This is an interesting result. International division of labor is widely progressed in East Asia and a partial FTA grouping in East Asia might be inefficient.
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