Distance, production, trade and growth: A note
AbstractThis short note tries to argue that distance is not necessarily harmful for trade. It is shown that there may be an increase in the production and volume of trade if time zones of the trading nations are non-overlapping. This implies a positive effect of distance on the volume of trade. It is also shown that exploitation of time zone difference raises welfare and ensures capital accumulation. The note builds on the emerging literature on time zones and pure theory of international trade. --
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2014-14.
Date of creation: 2014
Date of revision:
trade; time zone;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-18 (All new papers)
- NEP-GEO-2014-04-18 (Economic Geography)
- NEP-GRO-2014-04-18 (Economic Growth)
- NEP-INT-2014-04-18 (International Trade)
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