We propose a two-country growth model of intermediate business-services trade that captures the role of time zone differences. It is shown that a time-saving improvement in intermediate business-services trade involving production in different time zones can have a permanent impact on productivity.

We propose a two-country growth model of intermediate businessservices trade that captures the role of time zone differences. It is shown that a time-saving improvement in intermediate businessservices trade involving production in different time zones can have a permanent impact on productivity.

We use the HOS model of international trade to find a link between trading (including domestic trading or retailing) costs and pattern of trade, not just its effect on volume of trade. Even if we use symmetric iceberg type trading costs, unlike conventional unit cost approach, we generate...

This paper examines the role of intellectual property in developing countries in offshore outsourcing of R&D. We find that strengthened intellectual property protection in developing countries provides incentive for firms, both multinational and local, to specialize in undertaking an R&D...

We show the welfare effects of international trade cost reduction under endogenous domestic market structure. If the domestic labour market is competitive, there is no integer constraint and the trade cost represents transportation cost, a reduction in the transportation cost does not affect...

In presence of inequality a status driven utility function reconciles the conflict between income based and nutrition based measures of poverty. Moreover, it can explain why the poor tend to save less, an established empirical fact in the developing countries. The result is independent of the...

Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who "export" jobs through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets where the US has a comparative advantage feature...

Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who “export” jobs through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets where the US has a comparative advantage feature...

The main purpose of this study is to illustrate, with a simple two-factor (skilled labor and unskilled labor) trade model, how a time-saving improvement in business-services trade benefitting from differences in time zones can have an impact on national factor markets. For these purposes, we...

The purpose of this paper is to propose a model where trade has a direct and positive impact on growth rate of two trading nations beyond the level effect. We use the idea of virtual trade in intermediates induced by non- overlapping time zones and show how trade can increase the equilibrium...