Technology for Sale
AbstractFree trade commodities has often been considered to lead to the optimum allocation of resources between countries. If factor returns are not equalized by such trade, further gains can be obtained by allowing national factors access to world markets. But if technology, in the form of blueprints, is different between countries, sale of gifts of such technology form advanced to less advanced countries can lead to further gains. Indeed, in the Recardian model developed in this paper the only asymmetry between countries that would affect relative pries in technology, so that if transfers are allowed, the basis for commodity trade is removed (except for any payments for technology tranfer or bribes to persuade recipients to adpt the superior technology).
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Bibliographic InfoPaper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 425.
Length: 11 pages
Date of creation: 1996
Date of revision:
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Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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- Edwin Lai, 2008. "Globalization of production and the technology transfer paradox," Working Papers 0810, Federal Reserve Bank of Dallas.
- Jones, Ronald W. & Ruffin, Roy J., 2008. "The technology transfer paradox," Journal of International Economics, Elsevier, vol. 75(2), pages 321-328, July.
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