2022 Fiscal Year Final Research Report
International Trade and Inventory Management
Project/Area Number |
20K13476
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Research Category |
Grant-in-Aid for Early-Career Scientists
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Allocation Type | Multi-year Fund |
Review Section |
Basic Section 07040:Economic policy-related
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Research Institution | The University of Tokyo |
Principal Investigator |
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Project Period (FY) |
2020-04-01 – 2023-03-31
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Keywords | international trade / inventory management / trade costs / heterogeneous firms |
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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Free Research Field |
International Trade
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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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