Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/27002
Title: Intellectual property rights, technology transfer and exports in developing countries
Authors: Yang, L 
Maskus, KE
Keywords: Exports
Intellectual property rights
Technology transfer
Issue Date: 2009
Publisher: North-Holland
Source: Journal of development economics, 2009, v. 90, no. 2, p. 231-236 How to cite?
Journal: Journal of development economics 
Abstract: We develop a model to analyze one mechanism under which stronger intellectual property rights (IPR) protection may improve the ability of firms in developing countries to break into export markets. A Northern firm with a superior process technology chooses either exports or technology transfer through licensing as its mode of supplying the Southern market, based on local IPR policy. Given this decision, the North and South firms engage in Cournot competition in both markets. We find that stronger IPR would enhance technology transfer through licensing and reduce the South firm's marginal production cost, thereby increasing its exports. Welfare in the South would rise (fall) if that country has high (low) absorptive capacity. Excessively strong IPR diminish competition and welfare, however. Adding foreign direct investment as an additional channel of technology transfer sustains these basic messages.
URI: http://hdl.handle.net/10397/27002
ISSN: 0304-3878
EISSN: 1872-6089
DOI: 10.1016/j.jdeveco.2008.11.003
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