OPEN ECONOMY SPATIAL COMPUTABLE GENERAL EQUILIBRIUM MODEL FEATURING INTERNATIONAL TRANSPORT GATEWAY

Abstract

 This paper builds a spatial computable general equilibrium model featuring international transport gateway region. The model explicitly handles export industry and import industry as the required transport service industries for international trade. Domestic interregional transport system is also explicitly modeled by introducing iceberg transport cost concept. Furthermore we illustrate the methodology for converting from standard Input-Output table to benchmark data for our model and apply the methodology to Tokyo Metropolitan Input-Output Table.