Technology adoption, government policy and tariffication

Josh Ederington and Phillip McCalman

Journal of International Economics, 2013, vol. 90, issue 2, 337-347

Abstract: We integrate trade policy into an open-economy model of technology adoption to investigate the impact of alternate trade barriers on the equilibrium diffusion of a cost-saving technology. It is shown that even when ad-valorem tariffs have a neutral impact on technology adoption, non-tariff barriers such as quotas can be used to affect the speed of technology diffusion in both the home and foreign countries. In addition, we demonstrate how, in an open-economy setting, tariffication (i.e., the conversion of quotas to ad-valorem tariffs) can lead to faster technology adoption world-wide.

Keywords: Technology adoption; Tariffs; Quotas (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:90:y:2013:i:2:p:337-347

DOI: 10.1016/j.jinteco.2013.02.007

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