- 著者
-
Kurata Hiroshi
Nomura Ryoichi
Suga Nobuhito
- 出版者
- Graduate School of Economics & Business Administration, Hokkaido University
- 雑誌
- Discussion Paper, Series A
- 巻号頁・発行日
- vol.288, pp.1-32, 2015-09
This study clarifies how a reduction in trade costs affects location and economic welfare in an economy with a vertically-linked industry. We focus on location in upstream and downstream sectors and economic welfare for a reduction in trade costs for intermediate goods. We show
that the reduction in trade costs makes upstream and downstream production in the North move to the South, and further liberalization makes some of the upstream productions remove back to the North. We also demonstrate that such reduction in trade costs improves world
welfare but does not necessarily benefit for each country.