Introduction New Challenges in New Economic Geography

Developing countries, Developed countries, Economic geography, Econometric model

The middle-income trap from the viewpoint of trade structures

In this study, we try to elucidate the middle-income trap from the viewpoint of international trade. We conduct regression analyses on the relationship between income level and net export ratios for different types of goods for trapped and non-trapped samples separately. Our findings indicate that industrial upgrading appears to occur exactly as depicted by the flying-geese model for non-trapped countries while trapped countries tend to depend on the export of primary commodities, and industrialization appears to be driven by forward linkages to processed goods and a narrow base. The results of our analyses suggest that the middle-income trap is a form of Dutch disease or a \u27resource curse\u27 in the middle-income stage

A Mathematical Representation of "Excitement" in Games: A Contribution to the Theory of Game Systems

Researchers have long believed the concept of "excitement" in games to be subjective and difficult to measure. This paper presents the development of a mathematically computable index that measures the concept from the viewpoint of an audience and from that of a player. One of the key aspects of the index is the differential of the probability of "winning" before and after one specific "play" in a given game. The index makes a large contribution to the study of games and enables researchers to compare and analyze the “excitement” of various games. It may be applied in many fields, especially the area of welfare economics, and applications may range from those related to allocative efficiency to axioms of justice and equity

A gravity solution to the puzzling low number of covid-19 deaths in East asia

The number of deaths from the coronavirus disease 2019 (COVID-19) differs dramatically by country. The surprisingly low number of deaths from COVID-19 in several East Asian countries is a puzzle and we propose a different explanation for the variation in the number of deaths by country, the geographical distance from an epicenter of COVID-19. Combined with the gross domestic product for each country, we can explain the country variation in the number of deaths for more than 100 countries surprisingly well. By introducing these control variables, we can also correctly estimate the impacts of policy response and social/economic conditions. Adjusted by the gravity control variables, the difference in the number of deaths in European and American countries and East Asian countries becomes much smaller, from a factor of several hundred to a single digit, proposing a simple but powerful solution to the puzzle

A Mathematical Representation of "Excitement" in Games from the Viewpoint of a Neutral Audience

Researchers have long believed the concept of "excitement" in games to be subjective and difficult to measure. This paper presents the development of a mathematically computable index that measures this concept from the viewpoint of an audience. One of the key aspects of the index is the differential of the probability of "winning" before and after one specific "play" in a given game. If the probability of winning becomes very positive or negative by that play, then the audience will feel the game to be "exciting." The index makes a large contribution to the study of games and enables researchers to compare and analyze the "excitement" of various games. It may be applied to many fields especially the area of welfare economics, ranging from allocative efficiency to axioms of justice and equity

Comparing the Networks of Ethnic Japanese and Ethnic Chinese in International Trade

In this paper I re-examined the trade enhancing effects of ethnic Chinese networks, found by Rauch and Trindade (2002), on a newer and extended data set. The effects are estimated by the gravity equation with the product of the population ratio (or absolute number) of the ethnic Chinese in both the importing and exporting countries, and are reaffirmed positive and statistically significant. I also compared the effects of two different ethnic Japanese networks, i.e., the networks of long-term Japanese stayers in foreign countries, and the networks of permanent Japanese residents in foreign countries. It is found that the former has stronger trade enhancing effects than the latter. This shows that the effects of ethnic networks on international trade can be generalized beyond the ethnic Chinese, and the ’cohesiveness’ of the ethnic network matters to the trade enhancing effects of the network

A journey through the secret history of the Flying Geese Model

Economic development in East Asia is characterized by the sequential "take-off" of member countries. This multi-tiered economic development in East Asia is often termed the “Flying Geese” pattern of economic development. However, some authors argue that the traditional Flying Geese pattern is not applicable to some industries such as electronics. Here, Japan may no longer be the sole "leading goose", with "followers" such as China (now producing cutting-edge products) having "caught-up". Does this mean that the Flying Geese Model has become "obsolete" in the 21st century? The main objective of this paper is to clarify the two concepts of Flying Geese which now seem confused: (1) application of the pattern of economic development in one specific country, and (2) application of the pattern of economic development to multiple countries in sequence. This paper provides validity checks of Flying Geese Models after differentiating these two concepts more clearl

Chapter 4 The Challenges in Developing Realistic NEG Simulation Models for East Asia

This chapter attempts to identify some important issues in developing realistic simulation models based on new economic geography, and it suggests a direction for solving the difficulties. Specifically, adopting the IDE Geographical Simulation Model (IDE-GSM) as an example, we discuss some problems in developing a realistic simulation model for East Asia. The first and largest problem in this region is the lack of reliable economic datasets at the sub-national level, and this issue needs to be resolved in the long term. However, to deal with the existing situation in the short term, we utilize some techniques to produce more realistic and reliable simulation models. One key compromise is to use a 'topology' representation of geography, rather than a 'mesh' or 'grid' representation or simple 'straight lines' connecting each city which are used in many other models. In addition to this, a modal choice model that takes into consideration both money and time costs seems to work well.Southeast Asia, Economic geography, Econometric model, Geographical Simulation Model, East Asia, Spatial economics, Modal choice

Measuring population mobility speed from space

Ad-hoc population dynamics in Krugman’s type core and periphery models adjust population share of a region, based on its real wage rate deviation from national average, at pre-specified speed of population mobility. Whereas speed of population mobility is expected to be different across countries, for geographical, cultural, technological, etc. reasons, one common speed is often applied in theoretical and simulation analysis, due to spatially patchy, and temporally infrequent, availability of sub-national regional data. This article demonstrates how, increasingly available, high definition spatio-temporal remote-sensing data, and their by-products, can be used to measure speed of population mobility in national and sub-national level

A geographical simulation of impacts of Vientiane-Hanoi expressway

In this paper, we estimated the economic impacts of the proposed and some alternative routes of Vientiane-Hanoi Expressway (VHE), using a computational general equilibrium model based on spatial economics. The estimation results show that overall international positive impact depends more on whether it forms a cross-border expressway connection between the capitals of Vietnam and Thailand. The proximity of the expressway to Laos’s capital is nevertheless critical to economic benefits expected within Laos