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A model of technology transfer under taxation

Michelacakis, Nickolas (2014): A model of technology transfer under taxation.

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In this paper, we construct a model to study the technology transfer decision of a monopolist, with access to a finite number of technologies, under taxation. It is shown that a policy maker in a low-wage developing country cannot always increase the number of technologies transferred from a developed country through a tax on wages-and-invest scheme. We provide conditions for such an intervention to be successful and show that there is no unique choice of tax for doing so.

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