Tariffs, technology licensing and adoption

Hsiu-Li Chen; Hong Hwang; Arijit Mukherjee; Pei-Cyuan Shih

doi:10.1016/j.iref.2016.02.012

Tariffs, technology licensing and adoption

Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review

Overview

5 Scopus Citations

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Author(s)

Hsiu-Li Chen
Hong Hwang
Arijit Mukherjee
Pei-Cyuan Shih

Detail(s)

Original language	English
Pages (from-to)	234-240
Journal / Publication	International Review of Economics and Finance
Volume	43
Online published	15 Feb 2016
Publication status	Published - May 2016

Link(s)

DOI	DOI https://doi.org/10.1016/j.iref.2016.02.012 Final Published version
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Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-84975687545&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(8549210a-671f-493c-9e1f-cf0052f49e2b).html

Abstract

This paper develops a two-country Cournot duopoly model to investigate the implications of international technology licensing. It is shown that if the tariff imposed by the domestic country is high, it is optimal for the foreign firm to adopt an inferior technology for its production when it licenses its most advanced technology to the domestic firm. Such a licensing arrangement may improve welfare of the two countries.