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The Technology Transfer Paradox

In: International Trade Theory and Competitive Models Features, Values, and Criticisms

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  • Ronald W. Jones
  • Roy J. Ruffin

Abstract

This chapter 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.

Suggested Citation

  • Ronald W. Jones & Roy J. Ruffin, 2018. "The Technology Transfer Paradox," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 3, pages 31-46, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813200678_0003
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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, May.
    2. Jones, Ronald W., 2008. "Key international trade theorems and large shocks," International Review of Economics & Finance, Elsevier, vol. 17(1), pages 103-112.
    3. 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.
    4. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    5. Beladi, H. & Jones, R.W. & Marjit, S., 1996. "Technology for Sale," RCER Working Papers 425, University of Rochester - Center for Economic Research (RCER).
    6. 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 575-576, September.
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    Cited by:

    1. Martin Davies, 2016. "Technology Transfer and North–South," Review of International Economics, Wiley Blackwell, vol. 24(3), pages 447-483, August.
    2. Camacho, Oscar & Garfinkel, Michelle & Syropoulos, Constantinos & Yotov, Yoto, 2022. "Output Insecurity and Ownership Disputes as Barriers to Technology Diffusion," School of Economics Working Paper Series 2022-10, LeBow College of Business, Drexel University.
    3. Mohamed Saadi, 2011. "Technology Transfer, Foreign Direct Investment, Licensing and the Developing Countries’ Terms of Trade," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 5(4), pages 381-420, November.
    4. Beladi, Hamid & Chakrabarti, Avik & Marjit, Sugata, 2013. "Cross-border mergers in vertically related industries," European Economic Review, Elsevier, vol. 59(C), pages 97-108.
    5. Jones, Ronald W., 2010. "Art works in international trade theory," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 64-74, January.
    6. Yuntong Wang & Xiaopeng Yin, 2016. "Technology Transfer, Welfare, and Wage Inequality," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 611-623, May.
    7. Roy J. Ruffin, 2014. "Nontraded Goods and Real Exchange Rates in a Multi-Good Ricardian Model," Review of International Economics, Wiley Blackwell, vol. 22(1), pages 105-115, February.

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    More about this item

    Keywords

    International Trade Theory; Models; Competitive Markets;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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