On the “Technology Transfer” Paradox and “Worsening Terms of Trade” Paradox

Hiroshi Ohta and Hironobu Nakagawa

Asia-Pacific Journal of Accounting & Economics, 2008, vol. 15, issue 1, 41-53

Abstract: This paper revisits some seeming paradoxes or puzzles in trade theory. We explore the socalled “technology transfer” paradox, which may be interpreted more generally in terms of what we call the “worsening terms of trade” paradox. We show both paradoxes are no more paradox than the Leontief paradox is. We also assert that, judging from the implications that international technology transfers have for the possible pattern of trade, the seeming paradoxes that require the pattern-of-trade reversals are less likely to occur under conditions of the Hecksher-Ohlin variable input proportions than under the Ricardian fixed proportions.

Date: 2008
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DOI: 10.1080/16081625.2008.9720808

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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