Journal Article
No. 2015-1 | January 06, 2015
Distance, Production, Virtual Trade and Growth: A Note
(Published in Special Issue Distance and Border Effects in Economics)

Abstract

This paper argues that distance is not necessarily harmful to trade. It is shown that there may be an increase in the production and volume of trade if time zones of the trading nations are non-overlapping. This implies a positive effect of distance on the volume of trade in general and virtual trade in particular. It is also shown that exploitation of time zone differences raises welfare and ensures capital accumulation. The paper builds on the emerging literature on time zones and pure theory of international trade.

JEL Classification:

F1

Assessment

  • Downloads: 1753 (Discussion Paper: 1413)

Links

Cite As

Biswajit Mandal (2015). Distance, Production, Virtual Trade and Growth: A Note. Economics: The Open-Access, Open-Assessment E-Journal, 9 (2015-1): 1—12. http://dx.doi.org/10.5018/economics-ejournal.ja.2015-1


Comments and Questions


Anonymous - Need for Simulations
January 08, 2015 - 05:31

The paper looks good and original. It provides important insight into the integration of time variation on the study of distance and trade. However, I think the theoretical approach that it take makes less readable. I propose that some of the variables be developed more explicitly through use of theoretical ...[more]

... data such as simulation.