Collaboration in Technology and Multinational Production

Sophia Praetorius ()
Additional contact information
Sophia Praetorius: ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris

Sciences Po Economics Publications (main) from HAL

Abstract: How does technology sharing affect global production choices? To answer this question, I incorporate technology choices into a structural multinational production model and allow for collaboration in specialized assembly assets across firms when choosing the optimal production locations for their varieties. I find that both the technology choice itself and the potential sharing of it have important effects on the expected cost and profits of firms. Conditional on technology choices, the median firm's cost of serving a market increases by 24.65% compared to traditional models that do not model input technology. On the other hand, allowing for collaboration reduces their cost by 2.9%, with large firm heterogeneity. Importantly, the model allows for analysis not only of trade policy shocks but also of industrial policies. While restricting technology access has limited global effects, it creates significant production consequences for specific firms and countries, highlighting industrial policy as a more targeted tool than trade policy.

Date: 2025-09
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-05296847v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://sciencespo.hal.science/hal-05296847v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-05296847

Access Statistics for this paper

More papers in Sciences Po Economics Publications (main) from HAL
Bibliographic data for series maintained by Contact - Sciences Po Department of Economics ().