Why Trade When You Can Transfer the Technology: Revisiting Smith and Ricardo

This paper explores the possibility of international technology transfer in lieu trade a model with absolute and comparative advantage. Countries having advantage producing good may offer that to possible trading partner against fee both countries might gain. Thus, gains from be dominated by depending on extent advantages. We provide detailed conditions under which free equilibrium will pre-empted transfer. Such an avenue fruitful exchange remains unexplored Ricardian trade.