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Product Cycles and Market Penetration

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Author Info
Glass, Amy Jocelyn

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Abstract

This paper constructs a quality ladders product cycle model with multiple quality levels. A lower quality level of each product sells due to differences in willingness to pay for quality across consumers. The model determines how far Southern firms penetrate high-technology product markets. Expanded resources or weakened protection of intellectual property rights in the South relative to the North lead to increased Southern market penetration as observed with East Asian countries. Either cause of increased Southern market penetration implies a reduction in the wage in the North relative to the South and a reduction in the rate of innovation. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 38 (1997)
Issue (Month): 4 (November)
Pages: 865-91
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Handle: RePEc:ier:iecrev:v:38:y:1997:i:4:p:865-91

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  1. Guifang Yang & Maskus, Keith E., 2003. "Intellectual property rights, licensing, and innovation," Policy Research Working Paper Series 2973, The World Bank. [Downloadable!]
  2. Michelle P. Connolly & Diego Valderrama, 2005. "North-South technological diffusion and dynamic gains from trade," Working Papers in Applied Economic Theory 2004-24, Federal Reserve Bank of San Francisco. [Downloadable!]
  3. Amy Jocelyn Glass, 1999. "Imitation as a Stepping Stone to Innovation," Working Papers 99-11, Ohio State University, Department of Economics. [Downloadable!]
  4. Michelle P. Connolly, 1997. "Technological diffusion through trade and imitation," Staff Reports 20, Federal Reserve Bank of New York. [Downloadable!]
  5. Torben Klarl, 2009. "Modelling the folk theorem of spatial economics: a heterogeneous regional growth model," Discussion Paper Series 305, Universitaet Augsburg, Institute for Economics. [Downloadable!]
    Other versions:
  6. Amy Glass, 1999. "Substitution and Returns to Scale in R&D," Working Papers 99-12, Ohio State University, Department of Economics. [Downloadable!]
  7. Alka Chadha, 2005. "Product cycles, innovation and exports: A study of Indian pharmaceuticals," Departmental Working Papers wp0511, National University of Singapore, Department of Economics. [Downloadable!]
  8. Michael W Nicholson, 2007. "The Impact of Industry Characteristics and IPR Policy on Foreign Direct Investment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(1), pages 27-54, April. [Downloadable!] (restricted)
  9. Andrea Brasili & Paolo Epifani & Rodolfo Helg, 1999. "On the dynamics of trade patterns," LIUC Papers in Economics 61, Cattaneo University (LIUC). [Downloadable!]
    Other versions:
  10. Edwin L Lai, 2004. "The Economics of Intellectual Property Protection in the Global Economy," Levine's Working Paper Archive 122247000000000481, David K. Levine. [Downloadable!]
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