TRADE AND TECHNOLOGY TRANSFER IN MONOPOLISTICALLY COMPETITIVE MODELS
Abstract
This dissertation is a study of trade and technology transfer in the context of monopolistically competitive models. The study is divided into three parts. Part One focuses on the role of the specifications of preferences, number of factors and the nature of production in trade models in which the structure of the market is that of product differentiated monopolistic competition. A number of models, which belong to the same class, are presented. These models are obtained by altering the specifications of preferences, number of factors and the nature of production. The effect of trade on production patterns and relative prices is contrasted across models. This comparison across models yields some general propositions. In Part Two alternative forms of economic interaction in the context of monopolistically competitive models are considered. The main focus is on technology transfer. First the nature of trade and the sources of the gains from trade are discussed. Then some forms of interaction (other than trade) that the structure of these models allows for are considered. Following this two specific models are considered. It is shown that technology transfer with trade will always result in full integration. The role of technology transfer and its relation to factor flows is pointed out and the production patterns that obtain under trade and technology transfer are contrasted. Some welfare aspects are also discussed. In Part Three the analysis is extended to models with two sectors. Only one of the two sectors is assumed to be monopolistically competitive. The second sector is assumed to produce an homogeneous good. Two general questions are addressed. We first focus on the effects of trade on the structure of the industry. In particular we study how the levels of R&D, and output levels change as a result of trade. Following this the relationship between implicit capital movements via technology transfers and explicit capital flows is investigated.
Degree
Ph.D.
Subject Area
Economics
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