Deakin University
Browse

File(s) under permanent embargo

Technology transfer, quality standards, and North–South trade

journal contribution
posted on 2013-01-01, 00:00 authored by Munirul NabinMunirul Nabin, Xuan NguyenXuan Nguyen, Pasquale Sgro
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.

History

Journal

Review of international economics

Volume

21

Issue

4

Pagination

783 - 796

Publisher

Wiley-Blackwell Publishing

Location

Chichester, England

ISSN

0965-7576

eISSN

1467-9396

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Usage metrics

    Research Publications

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC