Digital Mobility of Financial Capital Across Different Time Zones, Factor Prices and Sectoral Composition

Biswajit Mandal

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper I make an effort to formalize the possibility of transfer of financial capital across time zones to exploit the benefit of day night mismatch between two countries. The major pre-condition for such transaction is the completion of production, buying and selling of the product in twelve hours day-time of any calendar date. And the process of monetary transaction must be done through digital platform. In this backdrop I argue that exploration of such possibility reduces the effective cost of capital in the sector which is potentially time-zone difference exploitative. Subsequently we find other factor price effects and sectoral composition changes in a very conventional Heckscher-Ohlin nugget kind of structure. Though the results are not very surprising, but the mechanism. Without any traditional channels like trade, FDI, technology transfer, endowment changes I generate price effect due to digital mode of payment and twelve hours of activity.

Keywords: Time Zone Differences; Service Trade; Financial Capital, Outsourcing (search for similar items in EconPapers)
JEL-codes: F12 F16 F2 F21 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-int and nep-mon
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Related works:
Working Paper: Digital Mobility of Financial Capital Across Different Time Zones, Factor Prices and Sectoral Composition (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:119764

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