A Theoretical Analysis of Division of Labor for International Public Infrastructure Supply and its Application to East Asia

2016 Fiscal Year Final Research Report

• Project/Area Number: 26380333
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Aichi Gakuin University
• Principal Investigator: Tawada Makoto 愛知学院大学, 経済学部, 教授 (10137028)
• Project Period (FY): 2014-04-01 – 2017-03-31
• Keywords: 公共インフラ / 貿易パターン / 貿易利益

Outline of Final Research Achievements

In a dynamic Small Open Economy, a public input which, together with labor input, works as constant returns to scale is introduced in a dynamic small open economy. Then it is investigated which country exports which good and whether a country can obtain gains from trade. We obtained the result that a country with smaller labor endowment exports the good more dependent on the public input and necessarily gains from trade, but a country with larger labor endowment exports the good less dependent on public input and possibly loses from trade. The result is opposite to the case where a public input works as increasing returns to scale in industries. Thus the type of the public infrastructures is crucial to the trade patterns and gains from trade.

Free Research Field

国際経済