The technology transfer paradox
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.
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References listed on IDEAS
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- 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.
- Jones, Ronald W., 2008. "Key international trade theorems and large shocks," International Review of Economics & Finance, Elsevier, vol. 17(1), pages 103-112.
- 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, 05.
- 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 575-76, September.
- Beladi, H. & Jones, R.W. & Marjit, S., 1996. "Technology for Sale," RCER Working Papers 425, University of Rochester - Center for Economic Research (RCER).
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