A simple model of service offshoring with time zone differences
We propose a two-country monopolistic competition model of business service offshoring that captures the advantage conferred by time zone differences. We emphasize the role of the entrepreneurs, who decide how to produce business services (i.e., domestic service provision or service offshoring). It is shown that the utilization of communication networks induces a dramatic change in industrial structure due to entrepreneurial relocation (i.e., service offshoring) to take advantage of time zone differences. We show also show that in the presence of moving costs for entrepreneurs, technological improvements and the resulting increase in service offshoring may reduce a country's welfare.
Year of publication: |
2010
|
---|---|
Authors: | Kikuchi, Toru ; Long, Ngo Van |
Published in: |
The North American Journal of Economics and Finance. - Elsevier, ISSN 1062-9408. - Vol. 21.2010, 3, p. 217-227
|
Publisher: |
Elsevier |
Keywords: | Service offshoring Time zone differences Technological change Entrepreneurs Communication networks |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
A simple model of service offshoring with time zone differences
Kikuchi, Tōru, (2010)
-
Shift working and trade in labor services with time zone differences
Kikuchi, Tōru, (2011)
-
A simple model of service offshoring with time zone differences
Kikuchi, Tōru, (2010)
- More ...