Distance, time, and specialization
By: Carolyn Evans and James Harrigan.
Contributors: Harrigan, James.
Series: International finance discussion papers ;; no. 766; International finance discussion papers (Online) ;; no. 766.
Publisher: Federal Reserve Board
Published: 2003
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Balance of trade.; Consumption (Economics)
Description: "Time is money, and distance matters.  We model the interaction of these truisms, and show the implications for global specialization and trade: products where timely delivery is important will be produced near the source of final demand, where wages will be higher as a result.  In the model, timely delivery is important because it allows retailers to respond to fluctuating final demand without holding costly inventories, and timely delivery is only possible from nearby locations.  Using a unique dataset that allows us to measure the retail demand for timely delivery, we show that the sources of US apparel imports have shifted in the way predicted by the model, with products where timeliness matters increasingly imported from nearby countries"--Federal Reserve Board web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 9/15/2004.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.