Expansion of Network Integrations: Two Scenarios, Trade Patterns, and Welfare

Noritsugu Nakanishi and Toru Kikuchi

Journal of Economic Integration, 2005, vol. 20, 631-643

Abstract:

We present two different scenarios of expanding the communication networks (through which the intermediate business services are traded) and examine their consequences on trade patterns in goods and welfare of the countries. The first scenario is the “successive expansion” of a single network integration and the second one is the “parallel expansion” of plural network integrations. We show that the former can have harmful effects on the outside countries, while the latter can be “Pareto-improving” in each stage of the network expansion.

Keywords: Network integration; Trade pattern; Successive expension; Parallel expansion (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0334

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