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Tariffs and Technology Transfer through an Intermediate Product

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  • Eiji Horiuchi
  • Jota Ishikawa

Abstract

We examine the relationship between tariffs and North–South technology transfer in an oligopoly model when technology is embodied in a key component that only North firms can produce. They may have an incentive to transfer their technologies to South firms even if the South's licensing market is restricted or if intellectual property right protection is imperfect in the South. Interestingly, a decrease in the tariff on the final good as well as an increase may induce technology transfer. Our analysis suggests that the South should implement pro‐competitive policies to induce technology transfer and enhance welfare.

Suggested Citation

  • Eiji Horiuchi & Jota Ishikawa, 2009. "Tariffs and Technology Transfer through an Intermediate Product," Review of International Economics, Wiley Blackwell, vol. 17(2), pages 310-326, May.
    • Handle: RePEc:bla:reviec:v:17:y:2009:i:2:p:310-326
    DOI: 10.1111/j.1467-9396.2009.00826.x
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    References listed on IDEAS

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    1. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
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    Cited by:

    1. Ishikawa, Jota & 石川, 城太 & Okubo, Toshihiro, 2010. "Environmental Standards under International Oligopoly," CCES Discussion Paper Series 32, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
    2. Ki‐Dong Lee & Kangsik Choi, 2024. "Uniform versus discriminatory tariffs when competition mode is endogenous," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 95-120, January.
    3. Takao Asano & Noriaki Matsushima, 2014. "Environmental regulation and technology transfers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(3), pages 889-904, August.
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    5. Tomomichi Mizuno & Kazuhiro Takauchi & Takeshi Iida, 2011. "Better technology may be sold for a lower fee: The ad valorem tariff and licensing contract," Discussion Papers 1109, Graduate School of Economics, Kobe University.
    6. Ya-Po Yang & Jin-Li Hu, 2012. "Gresham’s law in environmental protection," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(2), pages 103-122, April.
    7. Aoki, Reiko & 青木, 玲子 & Kao, Tina, 2012. "Protection of basic research and R&D incentives in an international setting," CIS Discussion paper series 563, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    8. Ya‐Po Yang & Ying‐Yi Tsai & Su‐Ying Hsu, 2021. "Technology licensing, entry mode, and trade liberalization," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 834-853, May.
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    10. Kittaka, Yuta & Pan, Cong, 2023. "The bright side of outside market entry with manufacturer encroachment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).

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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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