show the impacts of technology licensing on FDI and welfare. Licensing substitutes FDI, and the effects of lower trade cost … are ambiguous on the home country welfare and the host country welfare in presence of licensing. Whether, for a given … trade cost, licensing (compared to no licensing) increases welfare is also ambiguous …

technology transfer, technology transfer via licensing and foreign direct investment (FDI) on the North–South terms of trade and …. Licensing or FDI allows the North to further extract surplus from the South. However, we cast doubt on Kojima–Ozawa propositions … advantage and production efficiency, its welfare gain depends on how much it needs to pay to the North via licensing or FDI. In …