Theoretical analysis of the government compensating industrial and public policies in the enlargement process of trade liberalization

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The purpose of this research project was to analyze the effects of trade policies, industrial policies and public policies of a government on the resource allocation, income distribution and social welfare of the country in the process of trade liberalization.In the three year research period, our research group that consists of four members has published more than 25 research papers and so on. The 16 papers were published from international refereed academic journals such as International Economic Review, Economics Letters, Review of International Economics, Review of Development Economics and so on.Masayuki Okawa has analyzed the effects of tariff and quota policies in the oligopolistic intermediate goods markets on the behavior of the firms and social welfare and derived some new interesting results. He also studied the relationship between trade liberalization and economic aid under imperfect competition. It was shown that under some circumstances both donor and recipient countries can be better off by the economic aid and trade liberalization.Makoto Tawada has analyzed the trade and immigration policies of developing countries and derived new interesting results on the income distribution and welfare of both source and host countries. These results might provide some useful policy implication on the Japanese policy for the foreign workers He also worked on the strategic trade policies in the oligopolistic world market, extended some models in the preceding papers and derived some new results.Makoto Okamura and Takao Ohkawa have investigated trade policies and industrial policies under trade liberalization. They have analyzed the relationship between the strategic location choice behavior of internationally oligopolistic firms and optimal trade policy of the host country. Concerning industrial policies they have succeeded deriving some excellent new results which will become the foundation of our further research.