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A Simple Model of Service Trade with Time Zone Differences

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Author Info
Kikuchi, Toru
Iwasa, Kazumichi

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Abstract

This note proposes a two-country monopolistic competition model of service trade that captures the role of time zone differences as a determinant of trade patterns. It is shown that the utilization of time zone differences induces drastic change in trade patterns: Due to taking advantage of time zone differences, service firms learve larger countries for smaller countries.

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File URL: http://mpra.ub.uni-muenchen.de/9574/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9574.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:9574

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F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

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  1. Toru Kikuchi, 2006. "Time Zones, Outsourcing and Patterns of International Trade," Economics Bulletin, Economics Bulletin, vol. 6(15), pages 1-10. [Downloadable!]
  2. Marjit, Sugata, 2007. "Trade theory and the role of time zones," International Review of Economics & Finance, Elsevier, vol. 16(2), pages 153-160. [Downloadable!] (restricted)
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This page was last updated on 2008-11-18.

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