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Competing Communications Networks and International Trade

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  • Fukushima, Marcelo
  • Kikuchi, Toru

Abstract

This paper investigates the effects of competing communication networks on trade patterns in a Chamberlinian-Ricardian model of monopolistically competitive firms with a continuum of industries that require communication services in production. We conclude that intraindustry trade between different networks is determined by the relative size of networks and technological differences, and that a network will not have an incentive to expand indefi- nitely, despite network externalities.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7815.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:7815

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  1. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  2. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Richard G. Harris, 1995. "Trade and Communication Costs," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 46-75, November.
  4. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
  5. Toru Kikuchi & Koji Shimomura & Dao-Zhi Zeng, 2006. "On the Emergence of Intra-industry Trade," Journal of Economics, Springer, vol. 87(1), pages 15-28, 01.
  6. 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.
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Cited by:
  1. Zon, Adriaan van & Mupela, Evans, 2010. "Endogenous Economic Growth through Connectivity," MERIT Working Papers 001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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