2012 Volume 68 Issue 4 Pages 305-315
Port and airport are the most essential infrastructure for international freight transport. Therefore many trade transport industries are located on near port or airport. The locational characteristics have to be considered in order to understand the effect to regional economy by port/airport policy and trade policy. This paper builds an open-economy multi-region computable general equilibrium model which features the activity of trade related industrial sector regarding export and import. The behavior of export industry sector and import industry sector are explicitly formulated in the model as well as other industrial sector. The numerical analyses derive implications about the impacts to port city and hinterland city by trade demand shock and technological shock.