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Time zone-related continuity and synchronization effects on bilateral trade flows

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  • Rebecca Tomasik

Abstract

This paper finds the first empirical evidence of the time zone-related continuity effects on international trade. Several recent studies in the fragmentation/distance literatures provide theoretical justification for both positive (continuity) and negative (synchronization) effects of increased time zone differences on global export flows. This paper explicitly tests for the presence of both effects using bilateral manufacturing and service trade for 20 countries and 56 partner countries from 2000 to 2008. Results consistent with the theoretical expectations are found using a Poisson pseudo-maximum likelihood estimator. The general time zone difference effect on total exports is negative, suggesting the synchronization effect dominates. However, for services trade, the positive continuity effect is noted, indicating that time zones affect manufacturing and service trades differently. These results are robust to changes in the time zone, distance, and language measures, as well as alternate estimation techniques. Copyright Kiel Institute 2013

Suggested Citation

  • Rebecca Tomasik, 2013. "Time zone-related continuity and synchronization effects on bilateral trade flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 321-342, June.
    • Handle: RePEc:spr:weltar:v:149:y:2013:i:2:p:321-342
    DOI: 10.1007/s10290-013-0147-4
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    Cited by:

    1. Rishav Bista & Rebecca Tomasik, 2017. "Time Zone Effect and the Margins of Exports," The World Economy, Wiley Blackwell, vol. 40(6), pages 1053-1067, June.
    2. Elisabeth Christen, 2017. "Time Zones Matter: The Impact of Distance and Time Zones on Services Trade," The World Economy, Wiley Blackwell, vol. 40(3), pages 612-631, March.
    3. Mandal, Biswajit & Prasad, Alaka Shree, 2018. "Time Zone Differences, Communication Cost and Service Trade," MPRA Paper 87465, University Library of Munich, Germany.
    4. Edward Anderson, 2014. "Time differences, communication and trade: longitude matters II," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 337-369, May.
    5. Noritsugu Nakanishi & Ngo Van Long, 2015. "The Distributional and Allocative Impacts of Virtual Labor Mobility across Time Zones through Communication Networks," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 638-662, August.
    6. Eric Jonathon Osborne‐Christenson, 2022. "Saving light, losing lives: How daylight saving time impacts deaths from suicide and substance abuse," Health Economics, John Wiley & Sons, Ltd., vol. 31(S2), pages 40-68, October.
    7. Lilac Nachum & Peter J. Buckley, 2023. "Spatial and temporal distances in a virtual global world: Lessons from the COVID-19 pandemic," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 1121-1133, August.

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    More about this item

    Keywords

    Time zones; Bilateral trade; Distance; F14;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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