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Imports of technology of the newly industrialising countries: An inter‐industry analysis for Mexico and Pakistan
Author(s) -
Katrak Homi
Publication year - 1990
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3380020304
Subject(s) - subsidiary , indigenous , business , bargaining power , international trade , technology gap , newly industrialized country , payment , production (economics) , economics , developing country , multinational corporation , economic growth , finance , ecology , biology , microeconomics , macroeconomics
The NICs desire to import technology from the industrially advanced countries but are concerned that imperfections in the international market for technology enable the technology suppliers to set ‘high’ prices and also to discriminate between different types of buyers. This paper uses data of two NICs, Mexico and Pakistan, to analyse their technology payments in terms of (i) the costs of the technology suppliers, (ii) the benefits of the importing enterprises and (iii) the relative bargaining power of those parties. The possibility of discrimination between indigenous enterprises and foreign owned subsidiaries is also examined.