The transport sector and regional price differentials: A spatial CGE model for chinese provinces

Asao Ando, Bo Meng

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)


With regression formulas replaced by equilibrium conditions, a spatial CGE (Computable General Equilibrium) model can substantially reduce data requirements. Detailed regional analyses are thus possible in countries where only limited regional statistics are available. Alhough regional price differentials play important roles in multiregional settings, transport does not receive much attention in existing models. This paper formulates a spatial CGE model that explicitly considers the transport sector and FOB/CIF prices. After describing the model, the performance of our model is evaluated by comparing the benchmark equilibrium for China with a survey-based interregional I-O table for 1987. The structure of Chinese economies is summarized using information obtained from the benchmark equilibrium computation. This includes regional and sectoral production distributions and price differentials. The equilibrium for 1997 facilitates discussion of changes in regional economic structures that China has experienced in the decade.

Original languageEnglish
Pages (from-to)89-113
Number of pages25
JournalEconomic Systems Research
Issue number2
Publication statusPublished - 2009
Externally publishedYes


  • Chinese regional economy
  • FOB/CIF prices
  • SCGE model
  • Transport sector

ASJC Scopus subject areas

  • Economics and Econometrics


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