Tariffs and Technology Transfer through an Intermediate Product

Eiji Horiuchi and Jota Ishikawa
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Eiji Horiuchi: Hitotsubashi University

No 2007-15, Discussion Papers from School of Economics, The University of New South Wales

Abstract: We examine the relationship between tariffs and technology transfer from the North to the South in an oligopolistic model. Technology is embodied in a key component which only the North firm can produce. Interestingly, a decrease in the tariff on the final good as well as an increase may induce technology transfer. If the South subsidizes the final-good production or imports of the intermediate good, technology transfer is also facilitated. However, the welfare effects are different between tariffs and subsidies. Our analysis suggests that the South should take pro-competitive policies to induce technology transfer and enhance welfare.

Keywords: technology transfer; intermediate products; tariffs; licensing; North-South trade (search for similar items in EconPapers)
JEL-codes: F12 F21 F23 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2007-05
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Tariffs and Technology Transfer through an Intermediate Product* (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:swe:wpaper:2007-15

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