THE IMPACT OF THE TAIPEI PORT CONTAINER TERMINAL ON THE NORTHERN REGION OF TAIWAN: A COMPUTABLE GENERAL EQUILIBRIUM MODEL

There are some primary modelling tools, including econometric forecasting models, fixed price input-output (I-O) multi-sector models, social accounting matrix (SAM) and computable general equilibrium (CGE) models, used to analyse regional economic issues. CGE models combine the advantages of econometric, I-O models and SAM, strengthening the theoretical basis of the modelling effort and thus enabling more precise policy analysis. Current CGE literature includes models used to analyse international trade, tax reform, energy and environment issues. However, application of this technique on a regional scale is rare in the scientific literature. In this paper, a small regional computable general equilibrium model is constructed and applied to analyse the economic impact of constructing Taipei Port Container Terminal (TPCT) locating in northern Taiwan. The research results provide a valuable reference for decision-makers in formulating ocean shipping and regional policies, as well as helping business managers with strategic planning.