Munich Personal RePEc Archive

A Simple Model of Service Trade with Time Zone Differences

Kikuchi, Toru and Iwasa, Kazumichi (2008): A Simple Model of Service Trade with Time Zone Differences.

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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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