Theoretical Analysis of Trade and Industrial Location

2014 Fiscal Year Final Research Report

• Project/Area Number: 24730197
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Applied economics
• Research Institution: Hokkaido University
• Principal Investigator: SUGA Nobuhito 北海道大学, 経済学研究科(研究院), 准教授 (70431377)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 市場統合 / 産業立地 / クールノー寡占 / 独占的競争 / 中間財 / 過少参入 / 南北貿易 / 貿易利益

Outline of Final Research Achievements

This research shows the impacts of market integration on industrial location, resource allocation, income distribution and economic welfare theoretically. The main findings are as follows. (1) In a small open economy, the number of oligopolistic firms who supply intermediate goods locally can be insufficient from the perspective of social efficiency. (2) Market integration in intermediate goods sectors not only causes a one-way shift in the location of manufacturing production toward a developing economy from an advanced economy but also gets back to an advanced economy the production of a certain spectrum of intermediate goods which moved to a developing economy. (3) There is a possibility that trade liberalization has a welfare-reducing effect under consumers’ love-of-variety preferences and variable expenditure shares (i.e., expenditure shares depending on commodity prices).

Free Research Field

国際貿易論