An Analysis on Effects of Container Ports Investment by Transnational Interregional SCGE Model

Abstract

Spatial Computable General Equilibrium (SCGE) model is one of the appropriate methodologies to assess the regional distribution of policy impacts including regional benefit. Standard SCGE models treat “multi-country system” or “multi-region in one country system” due to availability of Input-Output table as a data to be calibrated. Recent development of transnational interregional Input-Output table shows a breakthrough in the applicability of SCGE analysis. This paper builds a SCGE model consistent with a transnational interregional Input-Output table considering transport cost explicitly. We furthermore apply the model to a container port investment policy scenario and illustrate regional economic effects quantitatively.