Time Zones as a Source of Comparative Advantage
Abstract
This note proposes a three-country model of monopolistic competition that captures the role of time zones in the division of labor. The connectivity of business service sectors via communications networks (e.g. the Internet, satellite communications systems) is found to determine the structure of comparative advantage. That is, two countries with connected service sectors have a comparative advantage in the good that requires business services. It is also shown that the third unconnected country inevitably specializes in the good that does not require business services. Copyright � 2009 The Author. Journal compilation � 2009 Blackwell Publishing Ltd.Download Info
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Bibliographic Info
Article provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 17 (2009)
Issue (Month): 5 (November)
Pages: 961-968
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Matsuoka, Yuji & Fukushima, Marcelo, 2010. "Time zones, shift working and international outsourcing," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 769-778, October.
- Toru Kikuchi & Sugata Marjit, 2010.
"Time Zones and Periodic Intra-Industry Trade,"
EERI Research Paper Series
EERI_RP_2010_08, Economics and Econometrics Research Institute (EERI), Brussels.
- Kikuchi, Toru & Marjit, Sugata, 2010. "Time Zones and Periodic Intra-Industry Trade," MPRA Paper 24473, University Library of Munich, Germany.
- Matsuoka, Yuji & Fukushima, Marcelo, 2009. "Time Zones, Shift Working and Outsourcing through Communications Networks," MPRA Paper 13355, University Library of Munich, Germany.
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