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Time zone differences as trade barriers

Peter Egger and Mario Larch

Economics Letters, 2013, vol. 119, issue 2, 172-175

Abstract: This paper estimates the impact of time zone differences between trading locations on trade costs and trade in general equilibrium. Using homogeneous bilateral trade data between US states and Canadian provinces, time zone differences are found to reduce bilateral trade by 11% on average, which amounts to about one-sixth of the international border effect between the US and Canada.

Keywords: Trade costs; Time zones; Bilateral trade (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:119:y:2013:i:2:p:172-175

DOI: 10.1016/j.econlet.2013.02.016

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