Optimum tariffs and patent length in a model of North–South technology transfer

Sharmila Vishwasrao, Srabana Gupta and Hassan Benchekroun
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Srabana Gupta: The Penn State University, Erie

No 4022, Working Papers from Department of Economics, College of Business, Florida Atlantic University

Abstract: We study a developing country's choice of optimum tariffs and patent length in a theoretical model of trade and technology transfer. A Northern firm chooses whether to export or produce a new good in a Southern country. In the absence of patent protection, a high tariff is required to induce FDI. This reduces Southern welfare when the good is imported. The Southern government can combine a positive patent length with tariffs to reduce this loss and induce FDI. Thus Southern countries may have an incentive to protect patents, although never to the same extent as Northern countries.

Keywords: Trade policy; Intellectual property rights; Foreign direct investment (search for similar items in EconPapers)
JEL-codes: F13 F23 O34 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2004-10, Revised 2005-05
New Economics Papers: this item is included in nep-int, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (1)

Forthcoming in International Review of Economics & Finance

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Related works:
Journal Article: Optimum tariffs and patent length in a model of North-South technology transfer (2007)
Working Paper: Optimum Tariffs and Patent Length in a Model of North-South Technology Transfer (2004)
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