Detalle Publicación


Exchange rate uncertainty and international technology transfer

Autores: Mendi Güemes, Pedro; Costamagna, Rodrigo
Título de la revista: ECONOMICS BULLETIN
ISSN: 1545-2921
Volumen: 34
Número: 1
Páginas: 551 - 557
Fecha de publicación: 2014
We propose an incomplete contract model of licensing of a cost-reducing technology. We incorporate exchange rate uncertainty and analyze its impact on the parties' investment and licensing decisions. We show that exchange rate uncertainty introduces a distortion in the parties' specific investment decisions and could even prevent the transfer from taking place.