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Trade with Time Zone Differences: Factor Market Implications

  • Toru Kikuchi
  • Sugata Marjit
  • Biswajit Mandal

The main purpose of this study is to illustrate, with a simple two-factor (skilled labor and unskilled labor) trade model, how a time-saving improvement in business-services trade benefitting from differences in time zones can have an impact on national factor markets. For these purposes, we extend Marjit’s (2007) framework into the case with the night-shift work. By doing so, we intend to capture the situation where the night-shift work in one country is replaced by the day-shift work in another country. In other words, we will show that, trade with time zone differences will result in shifts of the relative supplies and demands for skilled labor around the globe.

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Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 17 (2013)
Issue (Month): 4 (November)
Pages: 699-711

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Handle: RePEc:bla:rdevec:v:17:y:2013:i:4:p:699-711
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