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Interconnectivity of communications networks and international trade

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  • Toru Kikuchi

Abstract

In this study a multi-country model of trade is developed that captures the role of country-specific communications network interconnectivity, which enhances trade in intermediate business services. The number of countries connected to internationally interconnected networks is found to determine the structure of comparative advantage. That is, countries with interconnected networks have a comparative advantage in the good that requires business services provided via networks. In connected countries, producers of that good benefit from the efficient transmission of business services. This research also demonstrates that countries whose country-specific networks are not connected to the interconnected networks may become worse off as the result of trade.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 36 (2003)
Issue (Month): 1 (February)
Pages: 155-167

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Handle: RePEc:cje:issued:v:36:y:2003:i:1:p:155-167

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Cited by:
  1. Iwasa, Kazumichi & Kikuchi, Toru, 2008. "Software Provision and the Impact of Market Integration: A Note," MPRA Paper 9315, University Library of Munich, Germany.
  2. repec:ebl:ecbull:v:6:y:2006:i:15:p:1-10 is not listed on IDEAS
  3. repec:ebl:ecbull:v:6:y:2005:i:7:p:1-9 is not listed on IDEAS
  4. Kikuchi, Toru, 2007. "Network Externalities and Comparative Advantage," MPRA Paper 4613, University Library of Munich, Germany.
  5. Kikuchi, Toru, 2005. "On the enlargement of interconnected communications networks in the world economy," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(1), pages 18-27, February.
  6. Jeon, Bang Nam & Tang, Linghui & Zhu, Lei, 2012. "Information Technology and Bilateral FDI: Theory and Evidence," MPRA Paper 36628, University Library of Munich, Germany.
  7. Toru Kikuchi & Ngo Van Long, 2009. "A Simple Model of Service Offshoring with Time Zone Differences," Discussion Papers 0916, Graduate School of Economics, Kobe University.
  8. Toru Kikuchi, 2006. "Time Zones, Outsourcing and Patterns of International Trade," Economics Bulletin, AccessEcon, vol. 6(15), pages 1-10.
  9. repec:ebl:ecbull:v:6:y:2007:i:4:p:1-7 is not listed on IDEAS

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