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Boomerang Effects of Wells Effects?

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Authors

Kim, JaiJune

Issue Date
1996-07
Publisher
Institute of Economic Research, Seoul National University
Citation
Seoul Journal of Economics, Vol.9 No.3, pp. 203-216
Keywords
wells effectsnet gainsboomerang effect
Abstract
As a home firm licenses technology abroad, foreign companies begin competing against home products. An attempt to enhance revenues by selling knowhow abroad might "boomerang" back to reduce profits. Foreign entry into the final goods industry, however, may stimulate home exports of intermediate goods to the foreign country ("wells effects"). This upstream expansion may partially of more than offset the profit loss in the home downstream industry. Net gains from technology licensing could go in either direction a priori.
ISSN
1225-0279
Language
English
URI
https://hdl.handle.net/10371/1085
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