A Simple Model of Service Offshoring with Time Zone Differences

Toru Kikuchi and Ngo Long

No 2990, CESifo Working Paper Series from CESifo

Abstract: We propose a two-country monopolistic competition model of business service offshoring that captures the advantage conferred by time zone differences. We emphasize the role of the entrepreneurs, who decide how to produce business services (i.e., domestic service provision or service offshoring). It is shown that the utilization of communication networks induces a dramatic change in industrial structure due to entrepreneurial relocation (i.e., service offshoring) to take advantage of time zone differences. We also show that in the presence of moving costs for entrepreneurs, technological improvements and the resulting increase in service offshoring may reduce a country’s welfare.

Keywords: service offshoring; time zone differences; technological change; entrepreneurs; communication networks (search for similar items in EconPapers)
JEL-codes: F12 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp2990.pdf (application/pdf)

Related works:
Journal Article: A simple model of service offshoring with time zone differences (2010)
Working Paper: A Simple Model of Service Offshoring with Time Zone Differences (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2990

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().