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Optimal Trade and Technology Policies: Dynamic Linkages

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  • Cheng, Leonard K

Abstract

This paper examines the dynamic linkages between technology policy on the one hand and tra de and industrial policies on the other. When any of the latter polic ies affects the incentives of firms to innovate, there is an independ ent argument for or against such a policy in addition to those obtain ed from the usual analysis of international oligopoly. The adoption o f an R&D policy involves a dynamic tradeoff in welfare, the pattern o f which depends on whether an R&D subsidy or tax is optimal. Noncoope rative R&D subsidies may lead to Pareto superior outcomes in the pres ence of international technological diffusion. Copyright 1987 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Cheng, Leonard K, 1987. "Optimal Trade and Technology Policies: Dynamic Linkages," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(3), pages 757-776, October.
  • Handle: RePEc:ier:iecrev:v:28:y:1987:i:3:p:757-76
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    Cited by:

    1. Praveen Kujal & Juan Ruiz, 2003. "Policy Synchronization and Staggering in a Dynamic Model of Strategic Trade," International Trade 0302003, University Library of Munich, Germany.
    2. Karp, Larry S. & Perloff, Jeffrey M., 1995. "The failure of strategic industrial policies due to manipulation by firms," International Review of Economics & Finance, Elsevier, vol. 4(1), pages 1-16.
    3. Bagwell, Kyle & Staiger, Robert W, 1992. "The Sensitivity of Strategic and Corrective R&D Policy in Battles for Monopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(4), pages 795-816, November.
    4. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics,in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455 Elsevier.
    5. Bagwell, Kyle & Staiger, Robert W., 1994. "The sensitivity of strategic and corrective R&D policy in oligopolistic industries," Journal of International Economics, Elsevier, vol. 36(1-2), pages 133-150, February.
    6. Giacomo Calzolari & Luca Lambertini, 2006. "Tariffs vs Quotas in a Model of Trade with Capital Accumulation," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 632-644, September.
    7. Julien Berthoumieu, 2015. "Policy Instruments, Patents and International Technology Diffusion in a North-South Duopoly," Working Papers hal-01155111, HAL.
    8. Alexandr Knobel, 2010. "Factors of important Tariff Information," Research Paper Series, Gaidar Institute for Economic Policy, issue 143P.
    9. Calzolari, Giacomo & Lambertini, Luca, 2007. "Export restraints in a model of trade with capital accumulation," Journal of Economic Dynamics and Control, Elsevier, vol. 31(12), pages 3822-3842, December.
    10. Julien Berthoumieu, 2015. "Technology Diffusion via Patent Collaborations: The Case of European Integration," Working Papers hal-01224761, HAL.

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