Discriminatory vs. uniform tariffs with international technology licensing
Journal
Asia-Pacific Journal of Accounting and Economics
Journal Volume
23
Journal Issue
3
Pages
268-277
Date Issued
2016
Author(s)
Abstract
This paper introduces technology licensing between rival firms into a three-country model to examine how an international technology licensing may upset the welfare ranking between a discriminatory tariff policy and a uniform tariff policy. It is found that a discriminatory tariff policy is inferior to a uniform tariff policy in terms of the social welfare of the importing country or the welfare of the world as a whole if the cost disadvantage of the licensor firm is high. This result is robust even if the licensor firm can engage in R&D investment in the long-run. © 2016 City University of Hong Kong and National Taiwan University.
Subjects
Discriminatory tariffs; international technology licensing; R&D; uniform tariff; welfare
Type
journal article