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The technology transfer paradox

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  • Jones, Ronald W.
  • Ruffin, Roy J.
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    Abstract

    This paper examines whether a country that enjoys a superior technology in all commodities in a two-country, multi-commodity Ricardian setting could actually gain if its technology in which it possesses its greatest comparative advantage is stolen or transferred to the other country without any compensation. Such a paradoxical possibility is shown always to exist with a finite number of commodities and equal-shared Cobb-Douglas demand conditions for certain ranges of relative country size.

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    File URL: http://www.sciencedirect.com/science/article/B6V6D-4S3G435-4/1/6f5ad05a5767b5f601c29c771a771bfc
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Economics.

    Volume (Year): 75 (2008)
    Issue (Month): 2 (July)
    Pages: 321-328

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    Handle: RePEc:eee:inecon:v:75:y:2008:i:2:p:321-328

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    Web page: http://www.elsevier.com/locate/inca/505552

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    References

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    1. Roy J. Ruffin & Ronald W. Jones, 2007. "International Technology Transfer: Who Gains and Who Loses?," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 209-222, 05.
    2. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer.
    3. Jones, Ronald W., 2008. "Key international trade theorems and large shocks," International Review of Economics & Finance, Elsevier, vol. 17(1), pages 103-112.
    4. Kemp, Murray C & Shimomura, Koji, 1988. "The Impossibility of Global Absolute Advantage in the Heckscher-Ohlin Model of Trade," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 575-76, September.
    5. Beladi, H. & Jones, R.W. & Marjit, S., 1996. "Technology for Sale," RCER Working Papers 425, University of Rochester - Center for Economic Research (RCER).
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    Cited by:
    1. Jones, Ronald W., 2010. "Art works in international trade theory," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 64-74, January.
    2. Beladi, Hamid & Chakrabarti, Avik & Marjit, Sugata, 2013. "Cross-border mergers in vertically related industries," European Economic Review, Elsevier, vol. 59(C), pages 97-108.

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