Competing Communications Networks and International Trade

Fukushima, Marcelo; Kikuchi, Toru

doi:2008.23.1.91

The Journal of Economic Integration 2008 March;23(1) :91-103.
DOI: https://doi.org/10.11130/jei.2008.23.1.91

Competing Communications Networks and International Trade

Marcelo Fukushima, Toru Kikuchi,

Kobe University

ABSTRACT

This paper investigates the effects of competing communication networks on trade patterns in a Chamberlinian-Ricardian model of monopolistically competitive firms with a continuum of industries that require communication services in production. We conclude that intraindustry trade between different networks is determined by the relative size of networks and technological differences, and that a network will not have an incentive to expand indefinitely, despite network externalities.

JEL classification: D43, F12

Keywords: Competing communications networks | International trade

REFERENCE

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2.	Dornbusch, R., Fischer, S., and Samuelson, P. (1977) Comparative Advantage, Trade and Payments in a Ricardian Model with a Continuum of Goods, American Economic Review, 67, 823-29.