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CHAPTER 3: The Technology Transfer Paradox

    Originally published in Journal of International Economics 75, (2008), pp. 321–328.

    We wish to thank Jonathan Eaton, two referees, Gokhan Akay, Paul Gregory, Peter Mieszkowski, and Costas Syropoulos for helpful comments.

    https://doi.org/10.1142/9789813200678_0003Cited by:0 (Source: Crossref)
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    Abstract:

    This chapter examines whether a country that enjoys a superior technology in all commodities in a two-country, multi-commodity Ricardian setting could actually gain if its technology in which it possesses its greatest comparative advantage is stolen or transferred to the other country without any compensation. Such a paradoxical possibility is shown always to exist with a finite number of commodities and equal-shared Cobb–Douglas demand conditions for certain ranges of relative country size.

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