International Technology Transfer: Who Gains and Who Loses? *

Roy J. Ruffin and Ronald W. Jones

Review of International Economics, 2007, vol. 15, issue 2, pages 209-222

Abstract: When one country has a superior technology in all commodities, a Ricardian model with two goods and two countries is used to examine uncompensated transfers of superior technology in one or both goods. A transfer of the superior but second-best technology always benefits the advanced country because it was improting that good initially and now gets it cheaper. But the free gift of the first-best technology can also benefit the advanced country if a certain productivity condition is satisfied because that country may now export its former import good at an even better terms of trade. Copyright © 2007 The Authors; Journal compilation © 2007 Blackwell Publishing Ltd.

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