Yasuhiro Takarada (p), Masafumi Tsubuku

Ryoichi Nomura

This paper develops a trade model with heterogeneous firms in traded and non-traded sectors to analyze the intra-industry effects of international trade. We consider how reduction in trade costs affects product switching within traded and non-traded sectors and their productivity change through a reallocation of resources between those sectors.

Yukio Karasawa-Ohtashiro (p), Dapeng Cai

Hirofumi Okoshi

See extended abstract.

Makoto Tawada (p)

Hiroshi Mukunoki

In this paper, we consider a Ricardian type of economy with a public infrastructure and show that, although the production possibility frontier is convex in the creation of atmosphere type of a public intermediate good but concave in the unpaid factor type, larger is the good with more heavily dependent on the public intermediate good according to an increase in the public intermediate good supply along the production possibility frontier in both types. Subsequently we show that a country with larger labor endowment likely exports the good more heavily dependent on public input in the creation of atmosphere case, while that country likely exports the other good in the unpaid factor case.

Kazunobu Hayakawa, Hayato Kato, Toshiyuki Matsuura, Hiroshi Mukunoki (p)

Kiyoshi Matsubara

To create rooms for production capacity for exported products, new exporters may decrease either or both the production of the other products and that of exported products for the domestic market. Namely, when starting exporting, firms need to reallocate their resource across products and markets. The purpose of this study is to investigate the within-plant resource reallocation across products and markets when multi-product firms start exporting. To this end, we employ the Indonesian manufacturing surveys during 2000-2012. As a result, we found the different pattern of resource reallocation between when the first exported product is a core-competence product or not. Also, it is found to be different according to firms’ resource abundance.

Kenji Kondoh (p)

Eriko Hiraiwa

We consider two types of illegal migrants to a developed country based on the expected lifetime income: low-risk entrance with high-risk of detection during their stay (type A) and high-risk entrance with low-risk of detection (type B). Also following new immigration policy introduced by Japan’s government in 2019, we consider two types of legal unskilled immigrants, limited staying period without their families (specific skills #1) and permitted permanent stay with their families (specific skills #2). We consider three possible cases co-existing those various types of migrants as the results of each individual’s choice. If all of four types of immigrants exist, paradoxically, we found that policies encouraging introduction of type B illegal immigrants will be the most preferable restriction policies for the host country which intends to improve both foreign workers’ quality and economic welfare of domestic residents.