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Geographical simulation analysis for logistics enhancement in Asia

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  • Kumagai, Satoru
  • Hayakawa, Kazunobu
  • Isono, Ikumo
  • Keola, Souknilanh
  • Tsubota, Kenmei

Abstract

This paper presents a simulation of the reduction of several components in trade cost for Asia and examines its impact on the economy. Our simulation model based on the new economic geography embraces seven sectors, including manufacturing and non-manufacturing sectors, and 1715 regions in 18 countries/economies in Asia, in addition to the two economies of the US and the European Union. The geographical course of transactions among regions is modeled as determined based on firms' modal choice. The model also includes estimates of some border cost measures such as tariff rates, non-tariff barriers, other border clearance costs, transshipment costs and so on. Our simulation analysis for Asia includes several scenarios involving the improvement/development of routes and the reduction of the above-mentioned border cost. We have shown that the contribution of physical and non-physical infrastructure improvements conducted together is larger than the sum of the contribution by each when conducted independently.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 34 (2013)
Issue (Month): C ()
Pages: 145-153

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Handle: RePEc:eee:ecmode:v:34:y:2013:i:c:p:145-153

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Geographical simulation; New economic geography; Asia; Trade cost;

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Citations

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Cited by:
  1. Ikumo Isono & Satoru Kumagai, 2013. "Long-run Economic Impacts of Thai Flooding: Geographical Simulation Analysis," Working Papers DP-2013-08, Economic Research Institute for ASEAN and East Asia (ERIA).
  2. Toshihiro KUDO & Satoru KUMAGAI & So UMEZAKI, 2013. "Making Myanmar the Star Growth Performer in ASEAN in the Next Decade: A Proposal of Five Growth Strategies," Working Papers DP-2013-19, Economic Research Institute for ASEAN and East Asia (ERIA).
  3. Kimura, Fukunari & Obashi, Ayako, 2011. "Production Networks in East Asia: What We Know So Far," ADBI Working Papers 320, Asian Development Bank Institute.
  4. Ikumo Isono & Satoru Kumagai & Fukunari Kimura, 2012. "Agglomeration And Dispersion In China And Asean: A Geographical Simulation Analysis," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1250005-1-1.
  5. Kudo, Toshihiro & Kumagai, Satoru, 2012. "Two-polar growth strategy in Myanmar : seeking "high" and "balanced" development," IDE Discussion Papers 371, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  6. Kudo, Toshihiro & Kumagai, Satoru & Umezaki, So, 2013. "Five growth strategies for Myanmar : re-engagement with the global economy," IDE Discussion Papers 427, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  7. Wignaraja, Ganeshan & Morgan, Peter & Plummer, Michael & Zhai, Fan, 2014. "Economic Implications of Deeper South Asian-Southeast Asian Integration: A CGE Approach," ADBI Working Papers 494, Asian Development Bank Institute.

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