IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v13y2005i4p757-769.html
   My bibliography  Save this article

International Trade and the Value of Time

Author

Listed:
  • Udayan Roy

Abstract

I discuss a generalized Heckscher–Ohlin–Vanek (HOV) model in which consumption requires time as well as money (as in Becker's theory of the allocation of time) and the amount of work that a worker can do per unit of time—her “ability”—varies from country to country. High ability implies high income per hour, which implies a high value of time and, therefore, high consumption of the good that is more “time‐saving.” Therefore, if domestic production of this good is not commensurately high, it would have to be imported. In this way, I demonstrate that international differences in worker ability constitute an independent source of gains from trade. The model is able to explain several observed features of North–South trade that are not explained by the HOV model. The theoretical possibility of a Leontief paradox‐type trade pattern is also demonstrated.

Suggested Citation

  • Udayan Roy, 2005. "International Trade and the Value of Time," Review of International Economics, Wiley Blackwell, vol. 13(4), pages 757-769, September.
    • Handle: RePEc:bla:reviec:v:13:y:2005:i:4:p:757-769
    DOI: 10.1111/j.1467-9396.2005.00535.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9396.2005.00535.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9396.2005.00535.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Susan Chun Zhu & Daniel Trefler, 2000. "Beyond the Algebra of Explanation: HOV for the Technology Age," American Economic Review, American Economic Association, vol. 90(2), pages 145-149, May.
    2. Markusen, James R. & Melvin, James R. & Maskus, Keith E. & Kaempfer, William, 1995. "International trade: theory and evidence," MPRA Paper 21989, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sugata Marjit & Gouranga Gopal Das, 2022. "Immunity-Driven Comparative Advantage and Its Palliative Effect on Social Health and Inequality - A Theoretical Perspective," CESifo Working Paper Series 9569, CESifo.
    2. Marjit, Sugata & Yang, Lei, 2020. "An Elementary Theorem on Gains from Virtual Trade," MPRA Paper 104088, University Library of Munich, Germany.
    3. Marjit, Sugata & Das, Gouranga G., 2023. "Immunity-driven Comparative Advantage and its Palliative Effect on Social Health and Inequality: A Theoretical Perspective," GLO Discussion Paper Series 1252, Global Labor Organization (GLO).
    4. Sugata Marjit & Lei Yang, 2020. "An Elementary Theorem on Gains from Virtual Trade," Working Papers 2046, Indian Institute of Foreign Trade.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hopp, Daniel & Kriebel, Michael, 2019. "The political economy of interregional competition for firms," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    2. Talamo, Giuseppina, 2010. "Corporate governance and capital flows," MPRA Paper 35853, University Library of Munich, Germany, revised 2011.
    3. Benarroch, Michael & Weder, Rolf, 2006. "Intra-industry trade in intermediate products, pollution and internationally increasing returns," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 675-689, November.
    4. Andres Rodriguez-Pose & Javier Sánchez-Reaza, 2003. "Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico," WIDER Working Paper Series DP2003-60, World Institute for Development Economic Research (UNU-WIDER).
    5. Erwin Bulte & Edward Barbier, 2005. "Trade and Renewable Resources in a Second Best World: An Overview," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(4), pages 423-463, April.
    6. Bernard C. Beaudreau, 2016. "Competitive and Comparative Advantage: Towards a Unified Theory of International Trade," International Economic Journal, Taylor & Francis Journals, vol. 30(1), pages 1-18, March.
    7. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
    8. Syeda Tayyaba Ijaz & Sumayya Chughtai, 2022. "The Impact of Financial, Economic and Environmental Factors on Energy Efficiency, Intensity, and Dependence: The Moderating Role of Governance and Institutional Quality," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 15-31, July.
    9. Koo, Won W. & Uhm, Ihn H., 2000. "U.S.-Canada Border Disputes In Grains: Dynamic Interface Between The Free Trade Agreement And Trade Remedy Laws," Agricultural Economics Reports 23267, North Dakota State University, Department of Agribusiness and Applied Economics.
    10. Sisira Jayasuriya, 2007. "Advanced International Trade: Theory and Evidence ‐ by Robert C. Feenstra," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 238-240, June.
    11. Peter Warr, 2002. "Export taxes and income distribution: The Philippines coconut levy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(3), pages 437-458, September.
    12. Trefler, Daniel & Zhu, Susan Chun, 2010. "The structure of factor content predictions," Journal of International Economics, Elsevier, vol. 82(2), pages 195-207, November.
    13. Michael A. Landesmann & Robert Stehrer, 2007. "Income Distribution, Technical Change And The Dynamics Of International Economic Integration," Metroeconomica, Wiley Blackwell, vol. 58(1), pages 45-73, February.
    14. Bridgman, Benjamin, 2012. "The rise of vertical specialization trade," Journal of International Economics, Elsevier, vol. 86(1), pages 133-140.
    15. Razmi, Arslan, 2007. "Pursuing manufacturing-based export-led growth: Are developing countries increasingly crowding each other out?," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 460-482, December.
    16. Khondoker Abdul Mottaleb & Kaliappa P. Kalirajan, 2014. "Determinants Of Labor-Intensive Exports By The Developing Countries: A Cross Country Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(05), pages 1-22.
    17. Roberto De Luca & Marco Di Mauro & Angelo Falzarano & Adele Naddeo, 2017. "A hydrodynamic model for cooperating solidary countries," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 90(7), pages 1-7, July.
    18. Klaus Wälde & Pia Weiss, 2004. "International Competition, Slim Firms and Wage Inequality," CESifo Working Paper Series 1254, CESifo.
    19. Sabiston, David R., 2001. "Le pass-through du taux de change," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(3), pages 425-454, septembre.
    20. Belser, Patrick, 1998. "Does Latin American and Caribbean Unemployment Depend on Asian Labor Standards?," IDB Publications (Working Papers) 6080, Inter-American Development Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:13:y:2005:i:4:p:757-769. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.