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The technology transfer paradox


  • Jones, Ronald W.
  • Ruffin, Roy J.


This paper 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

  • Jones, Ronald W. & Ruffin, Roy J., 2008. "The technology transfer paradox," Journal of International Economics, Elsevier, vol. 75(2), pages 321-328, July.
  • Handle: RePEc:eee:inecon:v:75:y:2008:i:2:p:321-328

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    References listed on IDEAS

    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. Beladi, H. & Jones, R.W. & Marjit, S., 1996. "Technology for Sale," RCER Working Papers 425, University of Rochester - Center for Economic Research (RCER).
    5. 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. Beladi, Hamid & Chakrabarti, Avik & Marjit, Sugata, 2013. "Cross-border mergers in vertically related industries," European Economic Review, Elsevier, vol. 59(C), pages 97-108.
    3. Jones, Ronald W., 2010. "Art works in international trade theory," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 64-74, January.
    4. 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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