Technology Transfers and Industry Closures
AbstractThere has been a shift of manufacturing industries from OECD countries to emerging countries. In a competitive global economy increases in productivity in any country are generally welfare-enhancing. The established industrialised countries can suffer from the collapse of some industries, and from the associated increase in unemployment. We model this process and analyze the interactions between various rigidities that cause it, such as the minimum viable scale of an industry or the number of workers who lack the necessary skills to change jobs. When, under free trade, the technology transfer causes the manufacturing industry to collapse in the home country, it experiences a discrete drop in welfare and the price of the manufactured good rises sharply. Further transfers may reverse these results. The optimal level of protection is the minimum size required to operate. Conditions that make supporting an ailing industry worthwhile can be interpreted in several ways but the conclusion is inescapable: technology transfers adversely affect arguments for industry protection at home. Certaines industries ont disparu des pays de l’OCDE et ont émigré dans les pays émergents. Dans un monde globalisé, les avances technologiques sont bénéfiques mais les pays avancés souffrent du chômage qui en est la conséquence parce que certains employés n’ont pas les qualifications requises pour d’autres empois. Nous analysons les conséquences de ces transferts de technologie qui peuvent être la cause de la disparition de certaines industries. Quand cela arrive, le pays souffre d’une diminution sévère de bien-être, qui peut être renversée avec d’avantage de transferts. Si un pays veut soutenir son industrie, la meilleure taille est la plus petite. Au final, la conclusion est claire : les transferts de technologie militent contre un support de l’industrie.
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.
Bibliographic InfoPaper provided by CIRANO in its series CIRANO Working Papers with number 2012s-27.
Date of creation: 01 Oct 2012
Date of revision:
Contact details of provider:
Postal: 2020 rue University, 25e étage, Montréal, Quéc, H3A 2A5
Phone: (514) 985-4000
Fax: (514) 985-4039
Web page: http://www.cirano.qc.ca/
More information through EDIRC
Technology Transfers; Industry Closures; Technology Transfers; Industry Closures;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-27 (All new papers)
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.:
- Teece, David J, 1977. "Technology Transfer by Multinational Firms: The Resource Cost of Transferring Technological Know-how," Economic Journal, Royal Economic Society, vol. 87(346), pages 242-61, June.
- Buckley, Peter J & Casson, Mark, 1981. "The Optimal Timing of a Foreign Direct Investment," Economic Journal, Royal Economic Society, vol. 91(361), pages 75-87, March.
- Markusen, James R., 2001.
"Contracts, intellectual property rights, and multinational investment in developing countries,"
Journal of International Economics,
Elsevier, vol. 53(1), pages 189-204, February.
- James R. Markusen, 1998. "Contracts, Intellectual Property Rights, and Multinational Investment in Developing Countries," NBER Working Papers 6448, National Bureau of Economic Research, Inc.
- Ignatius J. Horstmann & James R. Markusen, 1995.
"Exploring New Markets: Direct Investment, Contractual Relations and the Multinational Enterprise,"
NBER Working Papers
5029, National Bureau of Economic Research, Inc.
- Horstmann, Ignatius J & Markusen, James R, 1996. "Exploring New Markets: Direct Investment, Contractual Relations and the Multinational Enterprise," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(1), pages 1-19, February.
- Rafael Rob & Nikolaos Vettas, 2003.
"Foreign Direct Investment and Exports with Growing Demand,"
Review of Economic Studies,
Wiley Blackwell, vol. 70(3), pages 629-648, 07.
- Rafael Rob & Nikolaos Vettas, 2003. "Foreign Direct Investment and Exports with Growing Demand," PIER Working Paper Archive 03-001, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Rob, Rafael & Vettas, Nikolaos, 2001. "Foreign Direct Investment and Exports with Growing Demand," CEPR Discussion Papers 2786, C.E.P.R. Discussion Papers.
- Rafael Rob & Nikolaos Vettas, 2001. "Foreign Direct Investment and Exports with Growing Demand," Penn CARESS Working Papers f8c083d9257897f97ff49d054, Penn Economics Department.
- Niosi, Jorge & Hanel, Petr & Fiset, Liette, 1995. "Technology transfer to developing countries through engineering firms: The Canadian experience," World Development, Elsevier, vol. 23(10), pages 1815-1824, October.
- Roy Chowdhury, Indrani & Roy Chowdhury, Prabal, 2001. "A theory of joint venture life-cycles," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 319-343, March.
- Kabiraj, Tarun & Marjit, Sugata, 2003. "Protecting consumers through protection: The role of tariff-induced technology transfer," European Economic Review, Elsevier, vol. 47(1), pages 113-124, February.
- Glass, Amy Jocelyn & Saggi, Kamal, 1998. "International technology transfer and the technology gap," Journal of Development Economics, Elsevier, vol. 55(2), pages 369-398, April.
- Hoekman, Bernard M. & Maskus, Keith E. & Saggi, Kamal, 2004.
"Transfer of technology to developing countries : unilateral and multilateral policy options,"
Policy Research Working Paper Series
3332, The World Bank.
- Hoekman, Bernard M. & Maskus, Keith E. & Saggi, Kamal, 2005. "Transfer of technology to developing countries: Unilateral and multilateral policy options," World Development, Elsevier, vol. 33(10), pages 1587-1602, October.
- Rafael Rob & Nikolaos Vettas, 2003. "Foreign Direct Investment and Exports with Growing Demand," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 629-648.
- Coughlin, Cletus C., 1983. "The relationship between foreign ownership and technology transfer," Journal of Comparative Economics, Elsevier, vol. 7(4), pages 400-414, December.
- Horstmann, Ignatius J & Markusen, James R, 1987. "Strategic Investments and the Development of Multinationals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 109-21, February.
- Ping Lin & Kamal Saggi, 1999. "Incentives for Foreign Direct Investment under Imitation," Canadian Journal of Economics, Canadian Economics Association, vol. 32(5), pages 1275-1298, November.
- Mukherjee, Arijit & Pennings, Enrico, 2006. "Tariffs, licensing and market structure," European Economic Review, Elsevier, vol. 50(7), pages 1699-1707, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster).
If references are entirely missing, you can add them using this form.