Technology transfer, quality standards, and North–South trade

Nabin, Munirul H., Nguyen, Xuan and Sgro, Pasquale M. 2013, Technology transfer, quality standards, and North–South trade, Review of international economics, vol. 21, no. 4, pp. 783-796.

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Title Technology transfer, quality standards, and North–South trade
Author(s) Nabin, Munirul H.
Nguyen, Xuan
Sgro, Pasquale M.
Journal name Review of international economics
Volume number 21
Issue number 4
Start page 783
End page 796
Total pages 14
Publisher Wiley-Blackwell Publishing
Place of publication Chichester, England
Publication date 2013
ISSN 0965-7576
1467-9396
Keyword(s) licensing
global welfare
cost-assymetry
Summary This paper examines the economic consequences of technology transfer through licensing in a North–South model of vertical product differentiation, based on a product-line pricing framework. With its limited technological expertise, the southern firm cannot export to the northern market without purchasing the northern firm's “clean” and low-cost technology. With North–South cost-asymmetry, we conclude that the transfer of technology through licensing promotes trade, product variety and improves global welfare. However, without government intervention, the private levels of product quality chosen by firms tend to be lower than the socially optimal levels. This finding helps to explain why developed countries often set quality standards for imported foreign products.
Language eng
Field of Research 140207 Financial Economics
Socio Economic Objective 900301 Economic Issues in Tourism
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2013
Persistent URL http://hdl.handle.net/10536/DRO/DU:30055467

Document type: Journal Article
Collection: Deakin Graduate School of Business
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