CGE Analysis of Transportation Cost and Regional Economy: East Asia and Northern Kyushu


Research Associate Professor

The International Centre for the Study of East Asian Development (ICSEAD)

11-4 Otemachi, Kokurakita, Kitakyushu, 803-0814 JAPAN

Tel: +81 93 583 6202; Fax: +81 93 583 4602

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This study develops a multi-region computable general equilibrium model (CGE model), which analyzes the influence on a regional economy of a reduction in the transportation cost. The reduction in transportation cost is, in a word, reduction of the logistics cost. Logistic competition has accelerated with recent economic development. The Northern Kyushu region, which is the focal region of this study, is located near East Asian countries, including China and South Korea, but this area has fallen behind in the logistic competition. Therefore, immediate countermeasures are needed.

This study analyzes the economic effect on the Northern Kyushu region and on surrounding regions of the cost reduction caused by the logistic policy of the Northern Kyushu region. To achieve this purpose, several assumptions were made in the CGE model. First, the study analyzes 10 regions, namely Fukuoka City, Kitakyushu City, the rest of Fukuoka Prefecture, and Yamaguchi Prefecture (the northern Kyushu area consists of these regions), the rest of Japan, China, South Korea, Taiwan, ASEAN countries, and the USA. Second, in the production system, the transportation industry engenders transportation costs and these are added to the price of the commodity. Third, increasing returns to scale which Fujita et al. (1999) suggest was utilized for the manufacturing industry. Fourth, the number of firms belonging to industries with increasing returns was calculated endogenously based on the above assumption.

As a result, the logistic improvement will be shown to have had an economic effect, including an increase in the number of firms in the Northern Kyushu region.

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Anastasia Stratigea and Elias Grammatikogiannis

National Technical University of Athens, School of Rural and Surveying Engineering, Department of Geography and Regional Planning, Iroon Polytechniou 9, Campus Zografou, 15780 Athens, Greece, Tel.: +30 210 7722749

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The focus of the present paper is on the development of a decision support framework for assessing alternative wind park locations using MCA tools. In the first part, it elaborates on the development of such a framework, with emphasis placed on the evaluation stage. More specifically, two multicriteria evaluation techniques are used (ELECTRE I and REGIME) as tools that can relief ‘method uncertainty’ and deal with conflicts and different perspectives in the decision making process. In the second part, this decision support framework is applied in a real world decision problem, namely the selection of wind park location in a Greek region (Tanagra-Boiotia) for the installation of a wind park that will partly serve the energy demand of a newly planned industrial area. Finally, some conclusions are drawn as to the empirical results obtained by the two multicriteria methods as well as their capacity to deal with multiobjective evaluation problems.

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Dr. Cristina LINKARU

National Scientific Research Institute for Labor and Social Protection – INCSMPS, Bucharest, Povernei 6-8, Bucharest, Sector 1, Romania, 010643 Romania, Telephone(s) +40-21-3124069/3172431, Fax(es) +40-21-3127595,

Dr. Vasilica Ciucă



Dr. Gabriela TUDOSE

Liliana GRECU


The European single market makes progress in view to become a single economic area. This process induces some tendencies regarding the crystallizing of the European single labour market. Following the first stage of our model (presented in detail in a previous article), based on OECD Employment Outlook 2009 and 2010 methodology consistent with Davis and Haltiwanger (1999) we use the “employment by time since job started” using EUROSTAT indicators provided in quarterly data as proxy for “employment by job tenure” indicator in view to calculate the annual hiring flows (number of hiring into an year). This method could be applied under some characteristics like: age groups (15-64 years, 15-24 years, 25-49 years, 50-64 years), gender (total, masculine, feminine), citizenship (citizen, non citizen based on lfsa_etpga Eurostat indicator). Our analysis is focused on the quantitative estimation of the labour force circulation at UE27 level, measured through the quantification of the individual labour contracts; contracts closed between noncitizen workers with an employer located in the European  host state (different state from the worker state origin), regardless the negotiation process, employment process, the level of negotiated salaries. We assume that the working contract closing/initiating is equivalent with the “hiring” event and its ending is equivalent with “separation”. Our main result is represented by the total non citizen worker flows estimation at European aggregate level as a measure of European single market development.

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