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| Terence Chong |
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| ''Network externalities as a source of comparative advantage'' |
| ( 2005, Vol. 6 No.7 ) |
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| This note examines how the network externalities of communications activities and trading opportunities interact to determine the structure of comparative advantage between countries. These interactions are obtained by constructing a two-country, two-sector model of trade involving a communications network sector. The role of network interconnectivity, which allows users of a network to communicate with users of another network, is also explored. A comparative advantage in the good that requires network services is held by the countries with interconnected networks. |
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| Keywords: network externalities: interconnectivity: comparative advantage |
JEL: F1 - Trade: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : May 29 2005 | | Manuscript Accepted : Jun 01 2005 |
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