International Technology Transfer: Who Gains and Who Loses?*

Roy J. Ruffin and Ronald Jones

Review of International Economics, 2007, vol. 15, issue 2, 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.

Date: 2007
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