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The Transport Sector And Regional Price Differentials: A Spatial Cge Model For Chinese Provinces

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  • Asao Ando
  • Bo Meng
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Abstract

With regression formulas replaced by equilibrium conditions, a spatial CGE (Computable General Equilibrium) model can substantially reduce data requirements. Detailed regional analyses are thus possible in countries where only limited regional statistics are available. Alhough regional price differentials play important roles in multiregional settings, transport does not receive much attention in existing models. This paper formulates a spatial CGE model that explicitly considers the transport sector and FOB/CIF prices. After describing the model, the performance of our model is evaluated by comparing the benchmark equilibrium for China with a survey-based interregional I-O table for 1987. The structure of Chinese economies is summarized using information obtained from the benchmark equilibrium computation. This includes regional and sectoral production distributions and price differentials. The equilibrium for 1997 facilitates discussion of changes in regional economic structures that China has experienced in the decade.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 21 (2009)
Issue (Month): 2 ()
Pages: 89-113

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Handle: RePEc:taf:ecsysr:v:21:y:2009:i:2:p:89-113

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Related research

Keywords: SCGE model; FOB/CIF prices; Transport sector; Chinese regional economy;

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Cited by:
  1. Ando, Asao & Meng, Bo & Chao, Qu, 2009. "Trade Coefficients and the Role of Elasticity in a Spatial CGE Model Based on the Armington Assumption," IDE Discussion Papers 204, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Ando, Asao & Meng, Bo, 2014. "Spatial price equilibrium and the transport sector : a trade-consistent SCGE model," IDE Discussion Papers 447, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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