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A model of technology transfer under taxation

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  • Michelacakis, Nickolas

Abstract

In this paper, we construct a model to study the technology transfer decision of a monopolist, with access to a finite number of technologies, under taxation. It is shown that a policy maker in a low-wage developing country cannot always increase the number of technologies transferred from a developed country through a tax on wages-and-invest scheme. We provide conditions for such an intervention to be successful and show that there is no unique choice of tax for doing so.

Suggested Citation

  • Michelacakis, Nickolas, 2014. "A model of technology transfer under taxation," MPRA Paper 58632, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58632
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    References listed on IDEAS

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    1. Marjit, Sugata, 1988. "A simple model of technology transfer," Economics Letters, Elsevier, vol. 26(1), pages 63-67.
    2. Ronald Findlay, 1978. "Relative Backwardness, Direct Foreign Investment, and the Transfer of Technology: A Simple Dynamic Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(1), pages 1-16.
    3. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Technology, Market Characteristics and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 10, pages 160-176, Palgrave Macmillan.
    4. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
    5. Feldstein, Martin & Hines, James R. & Hubbard, R. Glenn (ed.), 1995. "The Effects of Taxation on Multinational Corporations," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226240954.
    6. Martin Feldstein & James R. Hines Jr. & R. Glenn Hubbard, 1995. "The Effects of Taxation on Multinational Corporations," NBER Books, National Bureau of Economic Research, Inc, number feld95-2, January.
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    Cited by:

    1. Iraklis KOLLIAS & Sugata MARJIT & Nickolas J. MICHELACAKIS, 2019. "Public Investment, Taxation And Transfer Of Technology," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(3), pages 441-456, September.

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    Keywords

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    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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