Completion of a trunk-line network of transportation will naturally bring changes in comparative locational advantages and have impacts on economic structure of regions. The present paper attempts to analize these effects quantitatively and to present some simulations.
First, we, assuming the standpoint of national economy, built an econometric model for estimation of the trade co-efficients and tried to clarify the effects of the interregional trade structure. Then, we used the regional input-output tables to see its end-effects on various industrial sectors, because changes in final demand of the region and of the total economy induces the expansion of outputs through the interregional trade structure and also through the input-output structure of industrial sectors.
Finally, we estimated final demand without the new transportation network, and we compared the results.
The outline of the apparatus of our analysis is as follows: