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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

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.

Suggested Citation

  • Asao Ando & Bo Meng, 2009. "The Transport Sector And Regional Price Differentials: A Spatial Cge Model For Chinese Provinces," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 89-113.
  • Handle: RePEc:taf:ecsysr:v:21:y:2009:i:2:p:89-113 DOI: 10.1080/09535310903009627
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    References listed on IDEAS

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    1. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Springer;Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
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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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