The impact of parallel imports on investments in cost-reducing research and development

• 成果类型: Article
• 署名作者: Li, CY; Maskus, KE
• 署名单位: University of Colorado System; University of Colorado Boulder; Nankai University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2005.07.006
• 发表日期: 2006
• 页码: 443-455
• 关键词: Parallel imports; Process innovation; Trade costs; expected profits

摘要

We develop a two-country model of endogerious investment in process innovation by a manufacturer facing competition from parallel imports (PI). We find that the distortions associated with PI inhibit innovation. However, the difference between the manufacturer's expected profits under successful and failed innovation is U-shaped in the cost of engaging in PI. Thus, the reduction in R&D investment depends oil both legality of PI and transport costs. The reduction in innovation could harm global welfare, depending oil whether the manufacturer was deterring PI with a high wholesale price. If so, banning such trade would raise expected welfare. (c) 2005 Elsevier B.V. All rights reserved.