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Shift Working And Trade In Labour Services With Time Zone Differences

Author

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  • TORU KIKUCHI
  • NGO VAN LONG

Abstract

Using a two-factor (labor and capital), two-good (shift-working and non shiftworking commodities) model with two countries (Home and Foreign) which are located in different time zones, we highlight the impact of trade in labor services (via communication networks) on the comparative advantage of countries capable of such trade. It is shown that a comparative advantage in the shift-working commodity is held by pairs of countries in different time zones and connected through a good communication network. Concerning factor prices, if the shiftworking commodity is capital (resp. labor) intensive, the wage rate for day-shift labor will decrease (resp. increase) as a result of trade in labor services. It is also demonstrated that this kind of labor services utilization is mutual: some of Home’s day-shift labor will be utilized for Foreign night-shift, and vice versa. Thus, periodic trade in labor services occurs across countries.
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Suggested Citation

  • Toru Kikuchi & Ngo Van Long, 2011. "Shift Working And Trade In Labour Services With Time Zone Differences," Pacific Economic Review, Wiley Blackwell, vol. 16(5), pages 553-564, December.
    • Handle: RePEc:bla:pacecr:v:16:y:2011:i:5:p:553-564
    DOI: j.1468-0106.2011.00564.x
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    File URL: http://hdl.handle.net/10.1111/j.1468-0106.2011.00564.x
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    Cited by:

    1. Arundhati Sinha Roy & Anwesha Aditya & Siddhartha Chattopadhyay & Sugata Marjit, 2024. "Comparative Advantage in the 24/7 Economy: Time-Zone Differences and Service Trade Flows," CESifo Working Paper Series 11290, CESifo.
    2. 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.
    3. Prasad, Alaka Shree & Mandal, Biswajit, 2019. "Virtual trade between different time zones, educational capital and corrupt informal sector," MPRA Paper 96963, University Library of Munich, Germany.
    4. Noritsugu Nakanishi & Ngo Van Long, 2020. "A new impetus for endogenous growth: R&D offshoring via virtual labor mobility," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 846-883, August.
    5. Alaka Shree Prasad & Biswajit Mandal, 2019. "Time zone difference, skill formation and corrupt informal sector: the role of virtual trade," Indian Economic Review, Springer, vol. 54(2), pages 261-290, December.
    6. Mandal, Biswajit & Prasad, Alaka Shree, 2018. "Time Zone Differences, Communication Cost and Service Trade," MPRA Paper 87465, University Library of Munich, Germany.
    7. Mandal, Biswajit & Prasad, Alaka Shree & Bhattacharjee, Prasun, 2017. "A Review of Literature on Time Zone Difference and Trade," MPRA Paper 78779, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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