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Technology transfers and wages in China and the US

Author

Listed:
  • Moshe Adler

    (SUNY Empire State College, USA)

Abstract

The diversion of jobs from American workers to Chinese workers is a real issue. The paper explains that the problem exists because China is technology poor. It needs American corporations to come to China because when they do, they bring their technology with them. To lure them, China keeps its wages low. Giving China cheap access to technology would change the equation. Chinese wages would rise, and the gap between the wages of US and Chinese workers would shrink. The result? Chinese workers will produce for Chinese consumers, and US workers will produce for US consumers. How would the access to technology work in practice? The paper discusses compulsory licensing as a possible mechanism for an orderly transfer of technology from technology rich to technology poor countries.

Suggested Citation

  • Moshe Adler, 2022. "Technology transfers and wages in China and the US," ABEM Conference Proceedings, Academy of Business and Emerging Markets (ABEM), Canada, number 023445, July.
    • Handle: RePEc:ris:abemcp:023445
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