Why trade when you can transfer the technology: Revisiting Smith and Ricardo

B-Tier
Journal: Review of International Economics
Year: 2023
Volume: 31
Issue: 4
Pages: 1508-1527

Authors (2)

Rajat Acharyya (Jadavpur University) Sugata Marjit (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper explores the possibility of international technology transfer in lieu of trade in a model with absolute and comparative advantage. Countries having absolute advantage in producing a good may offer that technology to a potential trading partner against a fee and both the countries might gain depending on the extent of comparative and absolute advantages. Thus, gains from trade might be dominated by gains from technology transfer, and we provide a formal proof and conditions for this possibility. Such an avenue of fruitful exchange remains unexplored in the Ricardian model of trade. Our result extends to the many commodity case.

Technical Details

RePEc Handle
repec:bla:reviec:v:31:y:2023:i:4:p:1508-1527
Journal Field
International
Author Count
2
Added to Database
2026-01-24