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http://hdl.handle.net/10419/56871
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| Title: | | International service transactions: Is time a trade barrier in a connected world?  |
| Authors: | | Dettmer, Bianka |
| Issue Date: | | 2010 |
| Series/Report no.: | | Jena economic research papers 2011,003 |
| Abstract: | | The firms' international fragmentation of production has recently widened its focus from outsourcing of intermediates to off-shoring of business services such as software program development and international call centre networks. Although a large number of business services are intangible and non-storable, gravity model estimates show that geographical distance between business partners is still relevant even when information and communication technologies (ICT) provide alternatives for face-to-face interaction. It has recently been argued that time zones can be a driving force of international service transactions by allowing for continuously operating over a 24 hours business day. In this paper, we find empirical evidence for the continuity effect in trade of business and commercial services which is even higher for trade with Non-OECD countries and robust to measurement and sample size. We show that the time zone effect in trading business services is dependent on the level of ICT infrastructure. |
| Subjects: | | international trade business services gravity model distance time zones digital divide |
| JEL: | | F10 F14 F20 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Jena Economic Research Papers, MPI für Ökonomik
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