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Technology adoption, government policy and tariffication

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  • Ederington, Josh
  • McCalman, Phillip

Abstract

We integrate trade policy into an open-economy model of technology adoption to investigate the impact of alternate trade barriers on the equilibrium diffusion of a cost-saving technology. It is shown that even when ad-valorem tariffs have a neutral impact on technology adoption, non-tariff barriers such as quotas can be used to affect the speed of technology diffusion in both the home and foreign countries. In addition, we demonstrate how, in an open-economy setting, tariffication (i.e., the conversion of quotas to ad-valorem tariffs) can lead to faster technology adoption world-wide.

Suggested Citation

  • Ederington, Josh & McCalman, Phillip, 2013. "Technology adoption, government policy and tariffication," Journal of International Economics, Elsevier, vol. 90(2), pages 337-347.
  • Handle: RePEc:eee:inecon:v:90:y:2013:i:2:p:337-347
    DOI: 10.1016/j.jinteco.2013.02.007
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    References listed on IDEAS

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    More about this item

    Keywords

    Technology adoption; Tariffs; Quotas;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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