A Simple Model of Service Trade with Time Zone Differences
This note proposes a two-country monopolistic competition model of service trade that captures the role of time zone differences as a determinant of trade patterns. It is shown that the utilization of time zone differences induces drastic change in trade patterns: Due to taking advantage of time zone differences, service firms learve larger countries for smaller countries.
|Date of creation:||2008|
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- repec:ebl:ecbull:v:6:y:2006:i:15:p:1-10 is not listed on IDEAS
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