International Transfer of Localized Technology and Factor Income in the Ricardo-Viner Trade Model

Kaz Miyagiwa ()

Canadian Journal of Economics, 1988, vol. 21, issue 4, 736-46

Abstract: The implications of transferring a superior technology, localized a t foreign factor proportions, are examined within the context of the Ricardo-Viner model. The author shows that such a technology transfer decreases the wage rate and labor demand in the recipient country, a s well as affecting significantly other properties of the Ricardo-Viner model. For instance, the neoclassical ambiguity concerning the effec t on the real wage of a change in the relative commodity price disappears, and an increase i n a factor endowment need no longer depress the price of the expanding factor.

Date: 1988
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