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Tariffs, technology licensing and adoption

Chen, Hsiu-Li; Hwang, Hong; Mukherjee, Arijit; Shih, Pei-Cyuan


Hsiu-Li Chen

Hong Hwang

Pei-Cyuan Shih


This paper develops a two-country Cournot duopoly model to investigate the implications of international technology licensing. It is shown that if the tariff imposed by the domestic country is high, it is optimal for the foreign firm to adopt an inferior technology for its production when it licenses its most advanced technology to the domestic firm. Such a licensing arrangement may improve welfare of the two countries.

Journal Article Type Article
Publication Date May 30, 2016
Journal International Review of Economics & Finance
Print ISSN 1059-0560
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 43
Pages 234-240
APA6 Citation Chen, H., Hwang, H., Mukherjee, A., & Shih, P. (2016). Tariffs, technology licensing and adoption. International Review of Economics and Finance, 43, 234-240. doi:10.1016/j.iref.2016.02.012
Keywords Economics and Econometrics; Finance
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