A Study on the Economic Effects of Agricultural Commodities Importation on Japanese Industry Structure.

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The principal aim of this study is to evaluate econimic effects of agricultural commodities importation on the Japanese Industry Structure under the new trade scheme, i.e.GATT Agreements on Agriculture. In order to tackle this purpose, an applied general equilibrium model of Japan is developed, which includes land as a specific factor in agriculture and that agricultural sectors are subdivided into more fine sectors than the non agricultural sector.Several simulations are conducted. Firstly, effects of the minimum access of rice import is considered. In this case, two kinds of minimum access are compared : one is based on brown rice and the other on milled rice. The result shows that the agricultural land rent declines 2.9 - 2.5% for minimum access of 4%, 5.7 - 5.0% for minimum access of 8%, respectively. The ratio is higher in the case of brown rice basis, and that minimum access based on brown rice is desirable from a view point of welfare aspect. Secondly, livestock and dairy industries are considered. The results are as follows ; The output levels of manufacture are and service sectors increase via the reallocation of primary factors. While the labor productivity in all sectors increases, the capital productivity in non cultivate sectors decrease. The employment on livestock industry decline about 6%. Thirdly, total effects are examined. Results are as follows ; The economic effect of the agreements is not so small on the agricultural and its related sectors. The effect of the decrease in agricultural production is influential to the level of the domestic production sectors other than agricultural sectors primarily via factor movements from agricultural sectors. The welfare is better off, but the increment per capita is not so large. The rent of land decrease both in nominal and real terms due to the minimum access of rice import.