Optimum Tariffs and Patent Length in a Model of North-South Technology Transfer
AbstractThis paper constructs a theoretical model of trade and technology transfer to study a developing country’s choice of optimum tariffs and patent length. A Northern firm has a new good, which it must export to or produce in a Southern country. The Southern government simultaneously chooses an import tariff and patent length to maximize its welfare and induce foreign direct investment (FDI). The absence of patent protection requires high tariffs to induce FDI. This reduces welfare when the good is imported. A combination of patent length and tariffs can be used to reduce this loss and induce FDI. Thus Southern countries may have an incentive to protect patents, although never to the same extent as Northern countries.
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 Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 05-2004.
Length: 28 pages
Date of creation: 2004
Date of revision:
Contact details of provider:
Postal: C.P. 6128, Succ. centre-ville, Montréal (PQ) H3C 3J7
Phone: (514) 343-6557
Fax: (514) 343-7221
Web page: http://www.cireq.umontreal.ca
More information through EDIRC
trade policy; intellectual property rights; foreign direct investment;
Other versions of this item:
- Vishwasrao, Sharmila & Gupta, Srabana & Benchekroun, Hassan, 2007. "Optimum tariffs and patent length in a model of North-South technology transfer," International Review of Economics & Finance, Elsevier, vol. 16(1), pages 1-14.
- Sharmila Vishwasrao & Srabana Gupta & Hassan Benchekroun, 2004. "Optimum tariffs and patent length in a model of North–South technology transfer," Working Papers 04022, Department of Economics, College of Business, Florida Atlantic University, revised May 2005.
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-23 (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.:
- Svedberg, Peter, 1979. "Optimal Tariff Policy on Imports from Multinationals," The Economic Record, The Economic Society of Australia, vol. 55(148), pages 64-67, March.
- Lee, Jeong-Yeon & Mansfield, Edwin, 1996. "Intellectual Property Protection and U.S. Foreign Direct Investment," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 181-86, May.
- Magnus Blomstrom & Jian-Ye Wang, 1992.
"Foreign Investment and Technology Transfer: A Simple Model,"
NBER Working Papers
2958, National Bureau of Economic Research, Inc.
- Wang, Jian-Ye & Blomstrom, Magnus, 1992. "Foreign investment and technology transfer : A simple model," European Economic Review, Elsevier, vol. 36(1), pages 137-155, January.
- Zigic, Kresimir, 2000. "Strategic trade policy, intellectual property rights protection, and North-South trade," Journal of Development Economics, Elsevier, vol. 61(1), pages 27-60, February.
- Miyagiwa, Kaz & Ohno, Yuka, 1995.
"Closing the Technology Gap under Protection,"
American Economic Review,
American Economic Association, vol. 85(4), pages 755-70, September.
- Miyagiwa, K. & Ohno, Y., 1993. "Closing the Technology Gap Under Protection," Working Papers 93-09, University of Washington, Department of Economics.
- Miyagiwa, K. & Ohno, Y., 1993. "Closing the Technology Gap Under Protection," Discussion Papers in Economics at the University of Washington 93-09, Department of Economics at the University of Washington.
- Neary, J Peter & Leahy, Dermot, 2000.
"Strategic Trade and Industrial Policy towards Dynamic Oligopolies,"
Royal Economic Society, vol. 110(463), pages 484-508, April.
- Leahy, Dermot & Neary, J Peter, 1998. "Strategic Trade and Industrial Policy Towards Dynamic Oligopolies," CEPR Discussion Papers 1968, C.E.P.R. Discussion Papers.
- Neary, J.P. & Leahy, D., 1998. "Strategic Trade and Industrial Policy Towards Dynamic Oligopolies," Papers 98/14, College Dublin, Department of Political Economy-.
- D Leahy & J.P. Neary, 1998. "Strategic Trade and Industrial PolicyTowards Dynamic Oligopolies," CEP Discussion Papers dp0409, Centre for Economic Performance, LSE.
- James A. Brander & Barbara J. Spencer, 1980.
"Tariffs and the Extraction of Foreign Monopoly Rents under Potential Entry,"
414, Queen's University, Department of Economics.
- James A. Brander & Barbara J. Spencer, 1981. "Tariffs and the Extraction of Foreign Monopoly Rents under Potential Entry," Canadian Journal of Economics, Canadian Economics Association, vol. 14(3), pages 371-89, August.
- Glass, Amy Jocelyn & Saggi, Kamal, 2002.
" Multinational Firms and Technology Transfer,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 104(4), pages 495-513, December.
- Vishwasrao, Sharmila, 1994. "Intellectual property rights and the mode of technology transfer," Journal of Development Economics, Elsevier, vol. 44(2), pages 381-402, August.
- Ethier, Wilfred J. & Markusen, James R., 1996.
"Multinational firms, technology diffusion and trade,"
Journal of International Economics,
Elsevier, vol. 41(1-2), pages 1-28, August.
- Wilfred J. Ethier & James R. Markusen, 1991. "Multinational Firms, Technology Diffusion and Trade," NBER Working Papers 3825, National Bureau of Economic Research, Inc.
- Ethier, W.J. & Markusen, J.R., 1993. "Multinational Firms, Technology Diffusion and Trade," ISER Discussion Paper 0303, Institute of Social and Economic Research, Osaka University.
- Jean O. Lanjouw, 1998. "The Introduction of Pharmaceutical Product Patents in India: "Heartless Exploitation of the Poor and Suffering"?," NBER Working Papers 6366, National Bureau of Economic Research, Inc.
- M. Scott Taylor, 1993. "TRIPS, Trade, and Technology Transfer," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 625-37, August.
- Scherer, F M, 1972. "Nordhaus' Theory of Optimal Patent Life: A Geometric Reinterpretation," American Economic Review, American Economic Association, vol. 62(3), pages 422-27, June.
- Michael Ferrantino, 1993. "The effect of intellectual property rights on international trade and investment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(2), pages 300-331, June.
- An-Sing Chen & Hui-Jyuan Gao & Mark Leung, . "Is Trading Imbalance a Better Explanatory Factor in the Volatility Process? Intraday and Daily Evidence from E-mini S&P 500 Index Futures and Information-Based Hypotheses," Working Papers 0039, College of Business, University of Texas at San Antonio.
- Yang, Quanfa & Cheng, Liyun, 2008. "Import tariff, intellectual property right protection and foreign merger," Economic Modelling, Elsevier, vol. 25(6), pages 1225-1231, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharon BREWER).
If references are entirely missing, you can add them using this form.