Abstract:
– This paper aims to strive to model virtual trade resulting from time zone differences in an
otherwise Heckscher–Ohlin set up which is absent in the literature. So, the paper adds some value to the
existing literature on time zones (TZ) and trade.
Description:
A competitive general equilibrium model is developed first to
capture the effect of TZ differences on virtual trade. Then the authors examine, in brief, if distance can be
accommodated in such framework. Finally, the authors extend the model to incorporate informality.
