Title: Model analysis of the economical meaning for regional-independent production

Authors: Hiroki Ishikura

Addresses: Department of Corporate Intelligence, Osaka Gakuin University, 2-36-1 Kishibe-minami, Suita, Osaka 564-8511, Japan

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.

Keywords: regional-independent production; global economy; comparative advantage theory; regional independence; mathematical modelling; regional products; regional services.

DOI: 10.1504/IJMTM.2009.027775

International Journal of Manufacturing Technology and Management, 2009 Vol.18 No.4, pp.427 - 437

Published online: 10 Aug 2009 *

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