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Model analysis of the economical meaning for regional-independent production

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  • Hiroki Ishikura

Abstract

This paper discusses the importance of regional independence and the possibility of increasing competitiveness. Comparative Advantage Theory explains how regions become richer by producing and exchanging specific products and services. However, the theory is based on the premise that supply creates demand. Quantitative examples of the situation in which supply is larger than demand are given herein with mathematical models to illustrate the problem. If import and export do not always lead to increased wealth, a region which does not have enough products and services with an absolute advantage should try and use their regional products and services themselves, within their region.

Suggested Citation

  • Hiroki Ishikura, 2009. "Model analysis of the economical meaning for regional-independent production," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 18(4), pages 427-437.
    • Handle: RePEc:ids:ijmtma:v:18:y:2009:i:4:p:427-437
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