  We measure elasticity of substitution between foreign and domestic
commodities by two-point calibration such that the Armington aggregator can
replicate the two temporally distant observations of market shares and prices.
Along with the sectoral multifactor CES elasticities which we estimate by
regression using a set of disaggregated linked input--output observations, we
integrate domestic production of two countries, namely, Japan and the Republic
of Korea, with bilateral trade models and construct a bilateral general
equilibrium model. Finally, we make an assessment of a tariff elimination
scheme between the two countries.
