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Time Zones, Outsourcing and Patterns of International Trade

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  • Toru Kikuchi

    ()
    (Kobe University)

Abstract

This paper proposes a three-country model of business services trade 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) 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 country inevitably specializes in the good that does not require business services.

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File URL: http://www.accessecon.com/pubs/EB/2006/Volume6/EB-06F10018A.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 6 (2006)
Issue (Month): 15 ()
Pages: 1-10

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Handle: RePEc:ebl:ecbull:eb-06f10018

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  1. Toru Kikuchi, 2003. "Interconnectivity of communications networks and international trade," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 155-167, February.
  2. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
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Cited by:
  1. Rebecca Tomasik, 2013. "Time zone-related continuity and synchronization effects on bilateral trade flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(2), pages 321-342, June.
  2. Egger, Peter H. & Larch, Mario, 2013. "Time zone differences as trade barriers," Economics Letters, Elsevier, vol. 119(2), pages 172-175.
  3. Kikuchi, Toru & Iwasa, Kazumichi, 2008. "A Simple Model of Service Trade with Time Zone Differences," MPRA Paper 9574, University Library of Munich, Germany.

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