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Exchange rate uncertainty and international technology transfer

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  • Rodrigo Costamagna

Abstract

We propose an incomplete contract model of licensing of a cost-reducing technolosgu. We incorporate exchange rate uncertaintu and analyze its impact on the parties' investment and licensing decisions. Exchange rate fluctuations introduce a distortion between the licensor and the licensee's value for the technology. We show that the exchange rate uncertaintu introduces a distortion in the parties' specific investment decisions and could prevet the transfer from taking place.

Suggested Citation

  • Rodrigo Costamagna, 2010. "Exchange rate uncertainty and international technology transfer," NCID Working Papers 03/2010, Navarra Center for International Development, University of Navarra.
    • Handle: RePEc:nva:unnvaa:wp03-2010
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    File URL: http://ncid.unav.edu/download/file/fid/159
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    References listed on IDEAS

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    1. Darby, Julia, et al, 1999. "The Impact of Exchange Rate Uncertainty on the Level of Investment," Economic Journal, Royal Economic Society, vol. 109(454), pages 55-67, March.
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    6. Choi, Jay Pil, 2001. "Technology transfer with moral hazard," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 249-266, January.
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    More about this item

    Keywords

    technology transfer; liscensing; exchange rates;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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