Abstract

http://ssrn.com/abstract=772992
 
 

References (8)



 


 



Interconnected Communications Networks and Home Market Effects


Toru Kikuchi


Kobe University - Faculty of Economics


Canadian Journal of Economics, Vol. 38, No. 3, pp. 870-882, August 2005

Abstract:     
This study develops a model of trade that highlights the effects of the interconnection of country-specific communications networks as a driving force behind trade in high-tech products with positive transport costs. By constructing a two-country model of monopolistic competition with two production factors, it is shown that the locational decisions of firms may magnify the influence of interconnected networks. In a reversal of the standard home market effects, the abundance of unskilled labour in the developing countries can attract high-tech firms from the developed countries.

Number of Pages in PDF File: 13

JEL Classification: D43, F12, L13

Accepted Paper Series





Date posted: August 8, 2005  

Suggested Citation

Kikuchi, Toru, Interconnected Communications Networks and Home Market Effects. Canadian Journal of Economics, Vol. 38, No. 3, pp. 870-882, August 2005. Available at SSRN: http://ssrn.com/abstract=772992

Contact Information

Toru Kikuchi (Contact Author)
Kobe University - Faculty of Economics ( email )
2-1, Rokkodai
Nada-Ku
Kobe, Hyogo, 657-8501
Japan
Feedback to SSRN


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