A Computable General Equilibrium Analysis of Efficiency Improvements at Japanese Ports

Abstract

In this paper, we investigate the system-wide impact of increased efficiency of ports in Japan using a computable general equilibrium model developed for 1995. The technological efficiency in the ports reduces the cost of shipping transportation, and the forward and backward linkages of imports and exports introduce some positive gains in the national GDP. Our analysis proves that the spillover effects are substantial on shipping transportation and to a lesser extent on the Japanese economy. Since the port sector brings structural changes to the economies, the impact on the GDP due to productivity gains in the port sector is higher than equivalent gains in other sectors after controlling the..