Does technology licensing matter for privatization?

Wang, Leonard F S; Mukherjee, Arijit; Zeng, Chenhang

Abstract

In mixed oligopolies, technology licensing from a cost-efficient firm to a cost-inefficient firm has been widely observed. This paper examines the relationship between privatization and licensing (by public or private firms) with the consideration of either a domestic or a foreign private firm. We find that i) in the case of a domestic private firm, public licensing facilitates privatization, but private licensing hinders privatization; ii) in the case of a foreign private firm, both public and private licensing facilitate privatization. Our results yield important policy implications on privatization.

Citation

Wang, L. F. S., Mukherjee, A., & Zeng, C. (2020). Does technology licensing matter for privatization?. Journal of Public Economic Theory, 22(5), 1462-1480. https://doi.org/10.1111/jpet.12431

• Journal Article Type: Article
• Acceptance Date: Jan 25, 2020
• Online Publication Date: Feb 17, 2020
• Publication Date: 2020-09
• Deposit Date: Feb 3, 2020
• Publicly Available Date: Feb 18, 2022
• Journal: Journal of Public Economic Theory
• Print ISSN: 1097-3923
• Electronic ISSN: 1467-9779
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 22
• Issue: 5
• Pages: 1462-1480
• DOI: https://doi.org/10.1111/jpet.12431
• Keywords: Economics and Econometrics; Finance; Sociology and Political Science
• Public URL: https://nottingham-repository.worktribe.com/output/3864857
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1111/jpet.12431