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.
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- Elhanan Helpman, 2006.
"Trade, FDI, and the Organization of Firms,"
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"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
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- repec:ebl:ecbull:v:6:y:2006:i:15:p:1-10 is not listed on IDEAS
- Toru Kikuchi, 2005. "Interconnected communications networks and home market effects," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 870-882, August.
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