TY - JOUR
T1 - Technology adoption, government policy and tariffication
AU - Ederington, Josh
AU - McCalman, Phillip
PY - 2013/7
Y1 - 2013/7
N2 - We integrate trade policy into an open-economy model of technology adoption to investigate the impact of alternate trade barriers on the equilibrium diffusion of a cost-saving technology. It is shown that even when ad-valorem tariffs have a neutral impact on technology adoption, non-tariff barriers such as quotas can be used to affect the speed of technology diffusion in both the home and foreign countries. In addition, we demonstrate how, in an open-economy setting, tariffication (i.e., the conversion of quotas to ad-valorem tariffs) can lead to faster technology adoption world-wide.
AB - We integrate trade policy into an open-economy model of technology adoption to investigate the impact of alternate trade barriers on the equilibrium diffusion of a cost-saving technology. It is shown that even when ad-valorem tariffs have a neutral impact on technology adoption, non-tariff barriers such as quotas can be used to affect the speed of technology diffusion in both the home and foreign countries. In addition, we demonstrate how, in an open-economy setting, tariffication (i.e., the conversion of quotas to ad-valorem tariffs) can lead to faster technology adoption world-wide.
KW - Quotas
KW - Tariffs
KW - Technology adoption
UR - http://www.scopus.com/inward/record.url?scp=84879265480&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84879265480&partnerID=8YFLogxK
U2 - 10.1016/j.jinteco.2013.02.007
DO - 10.1016/j.jinteco.2013.02.007
M3 - Article
AN - SCOPUS:84879265480
SN - 0022-1996
VL - 90
SP - 337
EP - 347
JO - Journal of International Economics
JF - Journal of International Economics
IS - 2
ER -