Kikuchi, Toru and Marjit, Sugata and Mandal, Biswajit (2011): Trade with Time Zone Differences: Factor Market Implications.
Download (233kB) | Preview
The main purpose of this study is to illustrate, with a simple two-factor (skilled and unskilled labor) model, how a time-saving improvement in business-services trade benefitting from differences in time zones can have an impact on national factor markets. In 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.
|Item Type:||MPRA Paper|
|Original Title:||Trade with Time Zone Differences: Factor Market Implications|
|English Title:||Trade with Time Zone Differences: Factor Market Implications|
|Keywords:||Time Zone Differences; Trade in Business Services; Skilled and Unskilled Labor; Day-shift and Night-shift Work|
|Subjects:||F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation|
|Depositing User:||Biswajit Mandal|
|Date Deposited:||09. Apr 2012 01:32|
|Last Modified:||14. Feb 2013 02:41|
Anderson, E. (2012) “Longitude matters II: time differences, communication and trade”, Unpublished manuscript, School of International development, University of East Anglia.
Antras, P., L. Garicano and E. Rossi-Hansberg (2006) “Offshoring in a knowledge economy”, Quarterly Journal of Economics, 121(1), pp. 31-77.
Brown, C. and G. Linden (2009) Chips and Change, (Cambridge: MIT Press).
Costinot, A, J. Vogel and S. Wang (2012) “ An elementary theory of global supply chains” CESifo working paper series 3402.
Davis, D (1998) “Technology, unemployment and relative wages in a global economy,” European Economic Review 42(9), 1613-1633.
Deardorff, A. V. (2001) “Fragmentation in Simple Trade Models,” North American Journal of Economics and Finance, 12: 121–37.
Deardorff, A. V. (2003) “Time and Trade: the Role of Time in Determining the Structure and Effects of International Trade, with an Application to Japan,” in Japan’s Economic Recovery, ed. Robert M. Stern (Edward Elgar), pp. 63–76.
Dettmer, B (2011) “International service transactions: Is time a trade barrier in a connected world?, Jena Economic Research Papers 2011-003.
Dixit, A. K. and G. M. Grossman (1982) “Trade and Protection with Multistage Production,” Review of Economic Studies, 49: 583–94.
Do, V. and N. V. Long (2008) “International Outsourcing under Monopolistic Competition: Winners or Losers,” in Contemporary and Emerging Issues in Trade Theory and Policy, eds. Sugata Marjit and Eden Yu (Bingley UK: Emerald Group), pp. 345–66.
Eels, F. R. (1956) “The Economics of Shift Working,” The Journal of Industrial Economics 5,51-62.
Feenstra, R. C. and G. H. Hanson (1996) “Globalization, Outsourcing and wage Inequality,” NBER working paper 5424.
Findlay, R. (1978) “An ‘Austrian’ Model of International Trade and Interest Rate Equalization,” Journal of Political Economy, 86: 989– 1007.
Grossman, G. M. and E. Rossi-Hansberg (2008) “Trade in Tasks: A Simple Theory of Offshoring,” American Economic Review, 98: 1978–97.
Grubel, H. J. and P. J. Lloyd (1975) Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products, (London: Macmillan).
Gupta, A. and S. Seshasai (2004) “24-Hour Knowledge Factory,” Working Paper 4455–04, MIT Sloan School of Management. Gupta, A. and S. Seshasai (2007) “24-Hour Knowledge Factory: Using Internet Technology to Leverage Spatial and Temporal Separations,” ACM Transactions on Internet Technology, 7(3), Article 14.
Hamermesh, D. S. (1999) “The Timing of Work over Time,” Economic Journal, 109: 37–66.
Harms, P., O. Lorz and D. Urban (2012) “Offshoring along the production chain, Canadian Journal of Economics (forthcoming).
Harris, R. G. (1998) “The Internet as a GPT: Factor Market Implications,” in General Purpose Technologies and Economic Growth, ed. Elhanan Helpman (Cambridge: MIT Press), pp. 145–66.
Head, K., Mayer, T., & Ries, J. (2009) “How remote is the offshoring threat?,” European Economic Review 53, 429-444.
Hummels, D. (2001) “Time as a Trade Barrier,” mimeo, Purdue University.
Jones, R. W., and H. Kierzkowski (1990) “The Role of Services in Production and International Trade: A Theoretical Framework,” in The Political Economy of International Trade: Essays in Honor of Robert E. Baldwin, eds. Ronald W. Jones and Anne O. K.(Oxford: Blackwell), pp. 31–48.
Jones, R. W., and S. Marjit (2001) “The Role of International Fragmentation in the Development Process,” American Economic Review, 91: 363–6.
Jones, R. W., and S. Marjit (2009) “Competitive Trade Models and Real World Features,” Economic Theory, 41: 163–74.
Kikuchi, T.and S. Marjit (2011) “Growth with Time Zone Differences,” Economic Modelling, 28: 637–40.
Kohler, W. (2004a) “International Outsourcing and Factor Prices with Multistage Production,” Economic Journal, 114: C166–85.
Kohler, W. (2004b) “Aspects of International Fragmentation,” Review of International Economics, 12: 793–816.
Kostiuk, P. F. (1990) “ Compensating Differentials for Shift Work,” The Journal of Political Economy 98, 1054-1075.
Lanfranchi, J., Ohlsson H., & Skalli, A. (2002) “Compensating Wage Differentials and Shift Work Preferences,” Economics Letters 74, 393-398.
Long, N. V., R. Riezman and A. Soubeyran (2005) “Fragmentation and Services,” North American Journal of Economics and Finance, 16: 137–52.
Marjit, S. (1987) “Trade in Intermediates and the Colonial Pattern of Trade,” Economica, 54: 173–84.
Marjit, S. (2007) “Trade Theory and the Role of Time Zones,” International Review of Economics and Finance, 16: 153–60.
Marjit, S. and B. Mandal (2012) “Domestic Trading Costs in Pure Theory of International Trad,” International Journal of Economic Theory. (Forthcoming)
Marjit, S. and R. Acharyya (2006) “Trade liberalization, skill-linked intermediate and two sided wage gap,” Journal of Policy Reform, 9(3), 203—217.
Marjit, S and S. Kar (2009), “Emigration, Wage Inequality and Vanishing Sectors, GEP, University of Nottingham, RP 2009/20.
Matsuoka, Y. and M. Fukushima (2010) “Time Zones, Shift Working and International Outsourcing,” International Review of Economics and Finance, 19: 769–78.
NASSCOM (2012) Report on Knowledge Professionals (URL: www.nasscom.org) accessed on 27-01-2012.
Sanyal, K. K. (1983) “Vertical Specialization in a Ricardian Model with Continuum of Stages of Production,” Economica, 50, pp 71–8.
Sarkar, A. (1985) “A Model of Trade in Intermediate Goods,” Journal of International Economics, 19: 85–98.
Zaheer, S. (2000) “Time Zone Economics and Managerial Work in a Global Economy,”in Innovations in International Management, eds. Earley, P. C. and H. Singh (Thousand Oaks: Sage), pp. 339–53.