Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39002
Authors: 
Kikuchi, Toru
Long, Ngo Van
Year of Publication: 
2010
Series/Report no.: 
CESifo working paper Trade Policy 2990
Abstract: 
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 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.
Subjects: 
service offshoring
time zone differences
technological change
entrepreneurs
communication networks
JEL: 
F12
Document Type: 
Working Paper

Files in This Item:
File
Size
337.73 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.