Closing the Technology Gap Under Protection

This paper explores the linkage between protection and the speed with which a protected firm adopts new technology. Of primary importance here is the distinction between permanent and temporary protection on the one hand, and between tariffs and quotas on the other. We find that a permanent tariff s...

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Bibliographic Details
Published inThe American economic review Vol. 85; no. 4; pp. 755 - 770
Main Authors Miyagiwa, Kaz, Ohno, Yuka
Format Journal Article
LanguageEnglish
Published Menasha, Wis American Economic Association 01.09.1995
Subjects
Competitive advantage
Continuous casting
Costs
Economic models
Emerging technology
Foreign investments
Free trade
Import quotas
Innovation adoption
Marginal costs
Marginal value
Market shares
Nash equilibrium
Permanent paper
Protectionism
Quota systems
Quotas
Steel industry
Steels
Studies
Tariffs
Technological change
Technology
Technology adoption
Trade policy
United States > US
Japan
Europe
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Summary:This paper explores the linkage between protection and the speed with which a protected firm adopts new technology. Of primary importance here is the distinction between permanent and temporary protection on the one hand, and between tariffs and quotas on the other. We find that a permanent tariff speeds up adoption, but a permanent quota delays adoption unless the quota is highly restrictive. However, temporary protection (i.e., protection that remains effective until the firm adopts new technology) always delays the timing of technology adoption.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0002-8282
1944-7981