Trade liberalization, technology transfer, and endogenous R&amp;D

Hwang, Hong; Marjit, Sugata; Peng, Cheng-Hau

doi:10.1093/oep/gpw034

Cited by 12 publications

(7 citation statements)

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“…International technology transfer has been a major area of research, primarily in the field of industrial organization, applied game theory and development economics and continues to thrive as an active area of academic engagement. One can refer to an early reader on the topic by Singh and Marjit (2003) and papers by Glass and Saggi (1998), Kabiraj and Marjit (1993, 2003), Marjit (1990, 1995), Mukhopadhyay, Kabiraj and Mukherjee (1999), Kollias, Marjit and Michelacakis (2019), Marjit (1987, 1991), Mukherjee (2001), Mukherjee and Pennings (2006), Hwang, Marjit and Peng (2016), Saggi (2000), Sinha (2010).…”

Section: Introductionmentioning

confidence: 99%

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

Acharyya

Marjit

2023

Rev International Economics

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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 possible trading partner against a fee and both the countries might gain. Thus, gains from trade might be dominated by gains from technology transfer depending on the extent of comparative and absolute advantages. We provide detailed conditions under which free trade equilibrium will be pre-empted by technology transfer. Such an avenue of fruitful exchange remains unexplored in the Ricardian model of trade. JEL-Codes: F100.

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Section: Introductionmentioning

confidence: 99%

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

Acharyya

Marjit

2023

Rev International Economics

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“…The role of agricultural trade liberalisation in agricultural TFP convergence has been scarcely examined. However, the transmission mechanisms are mirrored from studies that examined the impact of total trade liberalisation on agricultural TFP growth (Teweldemedhin and Schalkwyk, 2010) and agricultural trade liberalisation on agricultural TFP growth (Skully and Rakotoarisoa, 2013;Hwang et al, 2016). Theoretically, the Factor Price Equalisation (FPE) theory (Hecksher, 1919;Ohlin, 1933;Samuelson, 1948) predicts that in the presence of free trade, factor prices will equate across countries, leading to convergence (Rassekh and Thompson, 1993;Liu, 2009).…”

Section: Introductionmentioning

confidence: 99%

Agricultural Trade Liberalisation and Agricultural Total Factor Productivity Growth Convergence in Africa

Sunge

Ngepah

2022

Res. Agric. Livest. Fish.

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Reducing income inequality in Africa rests on agricultural total factor productivity (TFP) growth and convergence. Liberalizing agricultural trade has emerged as a force of agricultural TFP growth convergence. Notwithstanding increasing agricultural trade, TFP in Africa is falling while the differences in TFP growth rates remain wide. We provide evidence on the impact of agricultural trade liberalization on agricultural TFP growth convergence. We examine trade by origin, disaggregated into intra-Africa, and rest-of-the-world trade. Also, we recognize the uniqueness of agricultural trade liberalization and analyze the effect of the removal of trade-distorting agriculture support. Using maize and rice data for the period 2005-2016, we apply a Feasible-Generalized- Least-Squares estimation of panel data models derived from Barro and Sala-i-Martin (1990). We find evidence for both absolute and conditional convergence, which is stronger for maize. Moreover, agricultural trade openness speeds up TFP growth convergence for both crops. Convergence speed is higher for intra-Africa trade. Estimations on domestic agriculture support suggest that reduction of support beyond distortion-free levels enhances TFP growth convergence. Our findings call for more agricultural trade liberalization. We appeal that the recently launched Africa Continental Free Trade Area prioritizes intra-Africa agricultural trade liberalization and further elimination of trade-distorting domestic agriculture support. Vol. 9, No. 2, August 2022: 71-88

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“…Marjit and Beladi (1999) considered the role of R&D-cost and aspect of technology adoption in the context of less-developed economies where superior technology is adopted by firms with mediumlevel of development or the backward ones. A related by different literature analyzes foreign firm with superior technology seeking entry into a new market in a country via FDI, where sets of local firms sell a similar but differentiated products (see Glass and Saggi (2002), Hwang, Marjit and Peng (2016), Kabiraj and Marjit (2003), Bagchi and Mukherjee (2014), Han, Haque and Mukherjee (2020)). Marjit, Beladi and Kabiraj (2007), Saggi (1999), Klein (2022) have considered technology transfer via FDI or licensing and the role of tariffs on brand products or, patents (IPR) and trade secrets on such modes of entry and transfer of technology.…”

Section: Introductionmentioning

confidence: 99%