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Tariffs, technology licensing and adoption

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


Hsiu-Li Chen

Hong Hwang

Professor of Industrial Economics

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.


Chen, H., Hwang, H., Mukherjee, A., & Shih, P. (2016). Tariffs, technology licensing and adoption. International Review of Economics and Finance, 43, 234-240.

Journal Article Type Article
Acceptance Date Oct 2, 2015
Online Publication Date Feb 15, 2016
Publication Date May 30, 2016
Deposit Date Dec 9, 2018
Journal International Review of Economics & Finance
Print ISSN 1059-0560
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 43
Pages 234-240
Keywords Economics and Econometrics; Finance
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