Trade Liberalization and Technology Transfer through an Intermediate Product

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.