2022 Volume 77 Issue 5 Pages I_21-I_28
This paper develops a methodology to estimate inter-regional trade barrier based on the theoretical foundation of multi-regional trade model and empirically estimates Japanese inter-regional trade by sector. We apply the calibration technique of the computable general equilibrium to the actual multi-regional Input-Output table of Japan. Inter-regional trade barrier is the unknown parameter and the calibration process yields the parameters which can reproduce the benchmark equilibrium state. We furthermore discuss the relationship between the past transport investment project and the historical shift of the trade barrier.
