A Method of Estimating Shadow Prices and its Application : International Competitiveness of Japanese Agriculture and Manufacturing Industries

摘要

The role of shadow prices of goods and factor are very important for project evaluation, and especially for evaluation of enviroment. Indeed there are many theoritical studies on shadow prices, however, few studies on estimating shadow prices from actual data. The purpose of this paper is to derive formula of shdow prices which can be easily estimated from the Input-Output data. We develop the linear general equilibrium model based on Bell-Devarajan-Tajika to derive the new formula of shadow prices for primamy factors, tradable goods, nontradable goods and foreign exchange. We apply these formula to Japanese Input-Output Table data to estimate shadow prices. Using these prices, we estimate Domestic Resorce Cost (DRC) as the index of international competitiveness of Industries. It is another purpose of this paper to analyze the changes of comparative advantage in Japanese industries including agricultural sector from 1960 to 1980. The major results are as follows: 1) The extent of comprative disadvantage of Japanese agriculture is large. 2) The labor intensive industries have lost its competitiveness since 1960. On the other hand, capital intensive industries such as machinary, chemestry, electricity has equired the competitiveness since 1980. These findings confirms us the effectiveness of DRC approach. 3) According to the coefficent of variation of DRC, the efficiency of resorce allocation was getting better from 1970 to 1975, but getting worse from 1975 to 1980.