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Competing Communications Networks and International Trade

Author

Listed:
  • Marcelo Fukushima

    (Kobe University)

  • Toru Kikuchi

    (Kobe University)

Abstract

This paper investigates the effects of competing communication networks on trade patterns in a Chamberlinian-Ricardian model of monopolistically competitive firms with a continuum of industries that require communication services in production. We conclude that intraindustry trade between different networks is determined by the relative size of networks and technological differences, and that a network will not have an incentive to expand indefinitely, despite network externalities.

Suggested Citation

  • Marcelo Fukushima & Toru Kikuchi, 2008. "Competing Communications Networks and International Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 91-103.
  • Handle: RePEc:ris:integr:0427
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    Cited by:

    1. Zon, Adriaan van & Mupela, Evans, 2010. "Endogenous Economic Growth through Connectivity," MERIT Working Papers 2010-001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    Keywords

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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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