Spatial Equilibrium Model on Regional Analysis for the Trade Liberalization of Fluid Milk in Taiwan
The purpose of this study is to analyze and solve the equilibrium demand, supply and the prices of fluid milk in each demand area and supply county of Taiwan under fixed import quantities and given income levels. This was accomplished by incorporating a spatial price equilibrium model that was derived for the maximization problem. Then, we modeled problems associated with three simulated fluid milk import policies – including import quotas, tariff, and complete liberalization – to analyze the impact and regional influence of the policies on consumers, producers and factories, respectively, from 2001 through 2006.
KeywordsTrade Liberalization Supply Function Import Tariff Supply Area Supply Price
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