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Tariffs, technology licensing and adoption

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

Authors

Hsiu-Li Chen

Hong Hwang

ARIJIT MUKHERJEE Arijit.Mukherjee@nottingham.ac.uk
Professor of Industrial Economics

Pei-Cyuan Shih



Abstract

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.

Citation

Chen, H., Hwang, H., Mukherjee, A., & Shih, P. (2016). Tariffs, technology licensing and adoption. International Review of Economics and Finance, 43, 234-240. https://doi.org/10.1016/j.iref.2016.02.012

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
DOI https://doi.org/10.1016/j.iref.2016.02.012
Keywords Economics and Econometrics; Finance
Public URL https://nottingham-repository.worktribe.com/output/1394346
Publisher URL https://www.sciencedirect.com/science/article/pii/S1059056016000289?via%3Dihub