FORMATH
Online ISSN : 2188-5729
ISSN-L : 2188-5729
Original Article
Identification of the Domains for Reverse Patterns of Forestry Specialization Using a Linear Trade Model that Includes Intermediate Goods
Yozaburo Ejiri
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2010 年 9 巻 p. 173-205

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This paper discusses development of a multi-country, multicommodity linear trade model that includes intermediate goods. This new model improves the author’s previous model by rigidly formulating the supply and demand conditions for each good according to the final demand for that good as a linear function of gross domestic product (GDP). Parameter domains of ϕoK (i.e., the level of public benefit - in monetary terms - provided by the forestry sector in country K, assuming that the forestry sector maintains its present output level) are investigated where the pattern of forestry specialization in each country reverses from its primary state. These domains were identified in three-dimensional ϕoK spaces. Public benefit was assumed to be directly proportionate to the country’s forestry output. Calculations were made using data from the “Asian International Input-Output Table 2000.” Simulations were conducted to examine interactions between Japan, the U.S., and China. Results showed that (1) if the present public benefit from the forestry sector in each country is not considered at all, then forestry output should be decreased in Japan, (2) when public benefit is considered, a “reverse domain” (in which desirable outputs increase) certainly exists within the range of ϕoJ =0 1.0(1010$/year) in the three-dimensional ϕoK spaces, and (3) when the agriculture, forestry, and fishery sectors are aggregated into one sector and public benefits from these sectors are evaluated together, this “reverse domain”exists within the range of ϕoJ =0 70(1010$/year) in the same spaces.

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© 2010 The Author(s) CC-BY 4.0

This article is licensed under a Creative Commons [Attribution 4.0 International] license.
https://creativecommons.org/licenses/by/4.0/
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