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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 and unskilled labor) model, how a time-saving improvement in business-services trade benefitting from differences in time zones can have an impact on national factor markets. In 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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File URL: http://hdl.handle.net/10.1111/rode.12060
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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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  1. Hummels, David, 2001. "Time as a Trade Barrier," GTAP Working Papers 1152, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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  5. Marjit, Sugata, 1987. "Trade in Intermediates and the Colonial Pattern of Trade," Economica, London School of Economics and Political Science, vol. 54(214), pages 173-84, May.
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  17. repec:hrv:faseco:4784031 is not listed on IDEAS
  18. Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2002. "Compensating wage differentials and shift work preferences," Economics Letters, Elsevier, vol. 74(3), pages 393-398, February.
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  20. Harris, R-G, 1996. "The Internet as a GPT : Factor Market Implications," Discussion Papers dp97-01, Department of Economics, Simon Fraser University.
  21. Marjit, Sugata & Kar, Saibal, 2009. "Emigration, Wage Inequality and Vanishing Sectors," MPRA Paper 19354, University Library of Munich, Germany.
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  24. Wilhelm Kohler, 2004. "Aspects of International Fragmentation," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 793-816, November.
  25. Sugata Marjit & Rajat Acharyya, 2006. "Trade Liberalization, Skill-linked Intermediate Production and the Two-sided Wage Gap," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(3), pages 203-217.
  26. Hamermesh, Daniel S, 1999. "The Timing of Work over Time," Economic Journal, Royal Economic Society, vol. 109(452), pages 37-66, January.
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  28. Bianka Dettmer, 2011. "International service transactions: Is time a trade barrier in a connected world?," Jena Economic Research Papers 2011-003, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  29. Marjit, Sugata, 2007. "Trade theory and the role of time zones," International Review of Economics & Finance, Elsevier, vol. 16(2), pages 153-160.
  30. Ronald W. Jones & Sugata Marjit, 2001. "The Role of International Fragmentation in the Development Process," American Economic Review, American Economic Association, vol. 91(2), pages 363-366, May.
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