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Distance, production, trade and growth: A note

Author

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  • Mandal, Biswajit

Abstract

This short note tries to argue that distance is not necessarily harmful for trade. It is shown that there may be an increase in the production and volume of trade if time zones of the trading nations are non-overlapping. This implies a positive effect of distance on the volume of trade. It is also shown that exploitation of time zone difference raises welfare and ensures capital accumulation. The note builds on the emerging literature on time zones and pure theory of international trade.

Suggested Citation

  • Mandal, Biswajit, 2014. "Distance, production, trade and growth: A note," Economics Discussion Papers 2014-14, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201414
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    Keywords

    trade; time zone;

    JEL classification:

    • F1 - International Economics - - Trade

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