Theoretical and Empirical Study on the effect of economic integration in Less Developed Countries

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530325
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Soka University
• Principal Investigator: SAITO Konomi 創価大学, 経済学部, 教授 (10247273)
• Co-Investigator(Kenkyū-buntansha): SAITO Katsuhiro 東京大学, 大学院農学生命科学研究科, 准教授 (80225698)
• Research Collaborator: PAUDEL Damaru
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 関税削減 / 次善の理論 / ネパール / 土地改革 / 社会会計表 / 応用一般均衡モデル / 所得分配 / ポリシー・ミックス

Outline of Final Research Achievements

A purpose of this study is to evaluate the effects of tariff reduction through economic integration on less developed countries which have poverty, trade deficit and government budget deficit.
No government intervention is the best in terms of economic welfare, but when the market is not perfect competitive, the government policy becomes important. Even when the market is perfect, tariff cut may deteriorate the economic welfare when the government keeps its budget constant before the tariff cut level. Analyzing the poverty issue, we estimated Nepalese social accounting matrix with detailed household categories(regional and income level), built the CGE model and clarified that land reform, one of the big political issues in Nepal will improve income distribution and poverty. We confirmed that policy mix such as land redistribution　(income redistribution) is essential with tariff elimination. To analyze the best policy mix with tariff elimination is one of our future study topics.

Free Research Field

経済政策