 經濟整合下的本國市場效應: 東協經濟共同體的探悉黃登興
No 18-A001, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan Abstract: We develop a general equilibrium trade model with one-factor two-sector and twoeconomy to analyze how a common market (CM) will affect the global production chain. In the model, only one of the two sector, say X, is designed to allow for vertical specialization, and the CM economy has technologically comparative advantage in the downstream production in X. Firstly, we prove that at equilibrium the CM will import x share finished upstream component for X, from the other economy, say A, to complete the following 1-x share of production process to produce final product of X, and export X to A. The comparative static analysis leads to the following results: (1) The expansion of CM, like AEC in the early 2000s, will shift the downstream of the production chain of X toward the expanded CM, and the other economy A will concentrate on the more upstream components, i.e. a decline in x. As a result, more component x are produced in a leading to export more the upstream component x and import more final goods of X from the CM. The relative wage of CM with respect to that of A will decline, if marginal productivity of labor in Y is decreasing. Not only the expansion of X occurs, but also more Y will be produced. (2) Country heterogeneity in terms different cultural, institutional and social difference among the CM members can induce production inefficiency in X sector in CM due to the across-border hidden barrier. We prove that the production inefficiency in CM in turn will offset the expansion effect by reducing the range of downstream production chain, i.e., 1-x reduced. Keywords: common market; ASEAN Economic Community; Home-market effect; Production supply chain; vertical specialization; cross-border logistical cost; country heterogeneity; one by two by two trade model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sin:wpaper:18-a001 Access Statistics for this paper More papers in IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan Contact information at EDIRC. |
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