NETWORK EXTERNALITIES AND COMPARATIVE ADVANTAGE

Toru Kikuchi

Bulletin of Economic Research, 2007, vol. 59, issue 4, 327-337

Abstract: In this article, I examine how the network externalities of communications activities and trading opportunities interact to determine the structure of comparative advantage. These interactions are examined by constructing a two‐country, three‐sector model of trade involving a country‐specific communications network sector. The role of the connectivity of network providers, which allows users of a network to communicate with users of another network, is also explored.

Date: 2007
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https://doi.org/10.1111/j.0307-3378.2007.00264.x

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Working Paper: Network Externalities and Comparative Advantage (2007)
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