Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

NORTH–SOUTH TRADE WITH MULTINATIONAL FIRMS AND INCREASING PRODUCT VARIETY *

NORTH–SOUTH TRADE WITH MULTINATIONAL FIRMS AND INCREASING PRODUCT VARIETY * We present a model of North–South trade with multinational firms and increasing product variety. Firms engage in innovative R&D to develop new product varieties in the North, and foreign affiliates of multinational firms engage in adaptive R&D to learn how to produce product varieties in the South. We find that a shift to stronger protection of intellectual property rights in the South induces foreign affiliates of multinational firms to increase their R&D expenditures, results in a faster rate of technology transfer within multinational firms, and increases long‐run consumer welfare in both regions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Economic Review Wiley

NORTH–SOUTH TRADE WITH MULTINATIONAL FIRMS AND INCREASING PRODUCT VARIETY *

Loading next page...
 
/lp/wiley/north-south-trade-with-multinational-firms-and-increasing-product-Bk4O7oyNKu

References (42)

Publisher
Wiley
Copyright
© (2011) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
ISSN
0020-6598
eISSN
1468-2354
DOI
10.1111/j.1468-2354.2011.00662.x
Publisher site
See Article on Publisher Site

Abstract

We present a model of North–South trade with multinational firms and increasing product variety. Firms engage in innovative R&D to develop new product varieties in the North, and foreign affiliates of multinational firms engage in adaptive R&D to learn how to produce product varieties in the South. We find that a shift to stronger protection of intellectual property rights in the South induces foreign affiliates of multinational firms to increase their R&D expenditures, results in a faster rate of technology transfer within multinational firms, and increases long‐run consumer welfare in both regions.

Journal

International Economic ReviewWiley

Published: Nov 1, 2011

There are no references for this article.