2003 Fiscal Year Final Research Report Summary
Theoretical and empirical analysis of the trade structure based on the international input-output table.
| Project/Area Number |
14530032
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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 |
Economic statistics
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| Research Institution | Konan University |
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Principal Investigator |
TOKUTSU Ichiro Konan University, EBA Institute, Professor, EBA高等教育研究所, 教授 (80140119)
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| Project Period (FY) |
2002 – 2003
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| Keywords | input output table / free trade area / general equilibrium model / Asian economy |
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| Research Abstract |
We developed a systematic and exhaustive model that explains the intra-industry trade structure in Asia-Pacific economic region based on the international input-output table. The Jacobian matrix of the excess supply function of 20 product markets in 10 countries including the 10 labor markets was estimated. The Jacobian matrix of 199 industries within the region turns out to be a dominant diagonal with positive diagonals, indicating that the international trade market equilibrium is stable, but when the labor markets are taken into account, the Jacobian matrix is slightly different from the dominant diagonal. The simulation analysis which assumes that labor endowment increases by one unit in each country shows that (1)the wager rate of the own country decreases without exception, but the rise in the wage rate is dominant in other countries, (2)the product prices of the own country decreases in general, but for the other countries the direction of the price change shows slight variation in its direction, (3)the level of production both of the own country and other countries increases except for the case where the production level of the U.S.A. slightly decreases when the labor endowment in Indonesia increases, (4)due to the import substitution induced by the relative price change, the export of the own country always increases, while its import decreases, and (5)the effect on the other countries' export and import shows slight irregularity depending both on the place where the increase of the labor endowment occurs and the industry structure of the corresponding country. The simulation presented in this research is very primitive, but it will be extended to more practical one that can deal with the effect of policy making such as the free-trade agreement within Asia-Pacific economic region.
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