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Time zone differences as trade barriers

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Author Info

  • Egger, Peter H.
  • Larch, Mario

Abstract

This paper estimates the impact of time zone differences between trading locations on trade costs and trade in general equilibrium. Using homogeneous bilateral trade data between US states and Canadian provinces, time zone differences are found to reduce bilateral trade by 11% on average, which amounts to about one-sixth of the international border effect between the US and Canada.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176513000773
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 119 (2013)
Issue (Month): 2 ()
Pages: 172-175

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Handle: RePEc:eee:ecolet:v:119:y:2013:i:2:p:172-175

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Trade costs; Time zones; Bilateral trade;

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References

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  1. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
  2. Toru Kikuchi, 2006. "Time Zones, Outsourcing and Patterns of International Trade," Economics Bulletin, AccessEcon, vol. 6(15), pages 1-10.
  3. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
  4. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  5. Stein, Ernesto & Daude, Christian, 2007. "Longitude matters: Time zones and the location of foreign direct investment," Journal of International Economics, Elsevier, vol. 71(1), pages 96-112, March.
  6. repec:ebl:ecbull:v:6:y:2006:i:15:p:1-10 is not listed on IDEAS
  7. Bianka Dettmer, 2011. "International service transactions: Is time a trade barrier in a connected world?," Jena Economic Research Papers 2011-003, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
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