Regional economic effects of transport infrastructure development featuring trade gateway region-asymmetric spatial CGE model approach

Abstract

Port, or airport, is an essential infrastructure for international trade. Actually it is impossible to export/import for island countries without such port infrastructure. International freight transport system includes not only the infrastructure facilities but also the specialized procedure of international cargo handling and trading in the “trade gateway” region. It means that the situation of transport, or trade, system is asymmetric between the trade gateway region and other regions. This paper proposes a methodology based on spatial computable general equilibrium (SCGE) model framework taking into account of the asymmetric aspects of trade gateway region explicitly. The model describes the role of export and import sector in the trade gateway region, which do not exist other hinterland regions. We then apply the model to Japanese economy divided into two regions, trade gateway (Tokyo) and rest of Japan. Some transport development scenarios are evaluated quantitatively. A sensitivity analysis remarks the discussions regarding the effects of elasticity assumptions.