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Trade with time zone differences: factor market implications

Author

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  • Kikuchi, Toru
  • Marjit, Sugata

Abstract

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.

Suggested Citation

  • Kikuchi, Toru & Marjit, Sugata, 2011. "Trade with time zone differences: factor market implications," MPRA Paper 30788, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:30788
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. Sugata Marjit & Biswajit Mandal, 2017. "Virtual trade between separated time zones and growth," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(2), pages 171-183, June.
    3. Mandal, Biswajit, 2015. "Distance, production, virtual trade and growth: A note," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-12.
    4. Sugata Marjit & Toru Kikuchi, 2011. "Time Zones and FDI with Heterogenous Firms," Discussion Papers Series 425, School of Economics, University of Queensland, Australia.
    5. Biswajit Mandal & Sugata Marjit, 2012. "Capital inflow, vanishing sector and wage distribution in an economy with corruption related intermediation," Economics Bulletin, AccessEcon, vol. 32(3), pages 2128-2135.
    6. Mandal, Biswajit & Marjit, Sugata & Nakanishi, Noritsugu, 2015. "Outsourcing, Factor Prices and Skill Formation in Countries with Non-overlapping Time Zones," MPRA Paper 68227, 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.
    8. Mandal, Biswajit & Marjit, Sugata & Nakanishi, Noritsugu, 2013. "Time Zones, Factor Prices and Inflow of Educational Capital: Changing Sectoral Composition," MPRA Paper 50883, University Library of Munich, Germany.

    More about this item

    Keywords

    Time Zone Differences; Skilled and Unskilled Labor; Dayshift and Night-shift Work;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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