Licensing of new technology versus direct foreign investment: A general equilibrium analysis Article

Miyagiwa, K, Young, L. (1997). Licensing of new technology versus direct foreign investment: A general equilibrium analysis . 2(3), 211-221. 10.1111/1468-0106.00035

cited authors

  • Miyagiwa, K; Young, L

abstract

  • We are grateful to a referee for helpful comments. In a general equilibrium model with sector-specific capital, a country which licenses new technology and imports capital itself would have lower national income than if it permitted direct investment by foreigners with rights to the technology. However, the reverse can be true if capital is mobile between sectors. Thus, licensing is a poor policy in the short run but can be a good policy in the long run.

publication date

  • January 1, 1997

Digital Object Identifier (DOI)

start page

  • 211

end page

  • 221

volume

  • 2

issue

  • 3