Taxation and the Transfer of Technology by Multinational Firms
AbstractThis paper analyzes a multinational's transfer of technology to a foreign subsidiary for the case where there is a risk of expropriation. An expropriation is assumed to give rise to competition between the parts of the previous multinational enterprise. To reduce the benefit of expropriation, the multinational generally transfers an inferior technology, even if the transfer of technology is costless. With a reduced benefit of expropriation, the multinational has to pay lower taxes to prevent expropriation. The multinational optimally transfers additional technology over time if it has a finite horizon in the country. For this case, tax payments also are shown to increase over time in a tax-holiday-like fashion.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 28 (1995)
Issue (Month): 3 (August)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
Other versions of this item:
- Huizinga, H.P., 1995. "Taxation and the transfer of technology by multinational firms," Open Access publications from Tilburg University urn:nbn:nl:ui:12-155149, Tilburg University.
- Huizinga, H.P., 1995. "Taxation and the transfer of technology by multinational firms," Discussion Paper 1995-41, Tilburg University, Center for Economic Research.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wright, Donald J., 1993.
"International technology transfer with an information asymmetry and endogenous research and development,"
Journal of International Economics,
Elsevier, vol. 35(1-2), pages 47-67, August.
- Wright, Donald J., 1990. "International Technology Transfer with an Information Asymmetry and Endogenous Research and Development," Working Papers 138, University of Sydney, School of Economics.
- Markusen, James R., 1984. "Multinationals, multi-plant economies, and the gains from trade," Journal of International Economics, Elsevier, vol. 16(3-4), pages 205-226, May.
- Mansfield, Edwin & Romeo, Anthony, 1980. "Technology Transfer to Overseas Subsidiaries by U.S.-Based Firms," The Quarterly Journal of Economics, MIT Press, vol. 95(4), pages 737-50, December.
- Findlay, Ronald, 1978. "Some Aspects of Technology Transfer and Direct Foreign Investment," American Economic Review, American Economic Association, vol. 68(2), pages 275-79, May.
- Findlay, Ronald, 1978. "Relative Backwardness, Direct Foreign Investment, and the Transfer of Technology: A Simple Dynamic Model," The Quarterly Journal of Economics, MIT Press, vol. 92(1), pages 1-16, February.
- Saggi, Kamal, 2000.
"Trade, foreign direct investment, and international technology transfer : a survey,"
Policy Research Working Paper Series
2349, The World Bank.
- Kamal Saggi, 2002. "Trade, Foreign Direct Investment, and International Technology Transfer: A Survey," World Bank Research Observer, World Bank Group, vol. 17(2), pages 191-235, September.
- Müller, Thomas, 2003. "The Multinational Enterprise," Munich Dissertations in Economics 799, University of Munich, Department of Economics.
- Helene, LATZER, 2006. "Foreign Direct Investment and the Nature of the Imitation Process," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2006012, Université catholique de Louvain, Département des Sciences Economiques.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.