Trade Liberalization and Technology Transfer through an Intermediate Product

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Horiuchi and Ishikawa (2007) examine the relationship between tariffs on the final good and international technology transfer through trade in an intermediate good. They show that a decrease in the tariff as well as an increase may lead the North monopolist to transfer technology to a South potential entrant. This paper shows that tariff-reductions may induce technology transfer even if technologytransfer competition among multiple North firms is taken into account.

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