Trade, Imitative Ability and Intellectual Property Rights (original) (raw)
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Intellectual property rights protection and trade: An empirical analysis
World Development, 2023
The paper proposes an empirical analysis of the determinants of the adoption of Intellectual Property Rights (IPR) and their impact on innovation in manufacturing. The analysis is conducted with panel data covering 112 countries. First we show that IPR protection is U-shaped with respect to a country's market size and inverse-U-shaped with respect to the aggregated market size of its trade partners. Second, reinforcing IPR protection reduces on-the-frontier and inside-the-frontier innovation in developing countries, without necessarily increasing innovation at the global level.
The Impacts of Intellectual Property Rights Protection on International Trade
2013
"Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) drew a tremendous attention since it was incorporated as one of the core agreements constituting the World Trade Organization (WTO). Positions are mainly divided into two mainstreams: some hold that expansion of IPR is an obstacle to growth and development, while on the other hand, some believe that IPR is beneficial to both developed and developing countries. Therefore, the focus of this study is to answer the following empirical questions: How does IPR protection affect trade? Does IPR protection have the same impact on trade across countries, or are there systematic differences conditioned on the stage of development? This study analyzes the impacts of IPR protection on international trade. We examined the effects of IPR protection index, Gross Domestic Product, population, tariffs, inflation, infrastructure, trade growth, and Foreign Direct Investment on trade volume. Our specifications also use interaction models between IPR protection index and stages of development of countries, which are classified into three different classes: factor-driven, efficiency-driven, and innovation-driven countries. The results show that IPR protection has basically negative effects on trade volume, especially for factor-driven countries. Nevertheless, the negative effects of IPR will be diminishing as its development level higher. This demonstrates that there are different impacts of IPR protection on trade depending on economic development level. For factor-driven economies, higher IPR protection may hinder its capacity to develop their economies, but for efficiency-driven and innovation-driven economies, IPR protection would have less impact on trade by itself so these countries should look at other factors in order to consider their adequate level of IPR protection."
World Economy, forthcoming
Using bilateral trade data of countries from 2000 to 2007, this paper contributes to the empirical literature on the role of intellectual property rights (IPRs) in global trade. The existing literature has focused on how IPRs in the destination country affect exports from a source country. In this paper, we add an additional dimension: the level of technology of the exporting country (LT). This is quite important for distinguishing the impact of IPRs on the exports of developed and developing countries, since the technology levels vary across countries at different stages of development and intellectual property rights better protect exports that are technologically advanced than exports that are imitative and potentially infringing. By factoring in the level of technology (LT), our empirical analysis makes the case that IPRs can act as barrier to exports from the South, especially the rapidly catching-up economies, and thus as one source for the middle-income trap phenomenon.
How trade-related are intellectual property rights
There is little empirical evidence about whether differing international levels of patent protection influence trade flows. If a nation strengthens its patent laws it could experience higher or lower imports. We specify an empirical model in which deviations of bilateral sectoral imports from anticipated levels are related to income, trade barriers, and patent laws. Patent regulations in the importing country are corrected for endogeneity through the use of instrumental variables. The results of the final equations indicate that increasing patent protection has a positive impact on bilateral manufacturing imports into both small and large developing economies.
Intellectual property, tariffs, and international trade dynamics
Journal of Monetary Economics, 2020
The emergence of global value chains not only leads to a magnification of trade in intermediate inputs but also to an extensive technology diffusion among the different production units involved in arms-length relationships. In this context, the lack of enforcement of intellectual property rights has recently become a highly controversial subject of debate in the context of the China-U.S. trade negotiations. This paper analyzes the strategic interaction of tariff policies and the enforcement of intellectual property rights within a quantitative general equilibrium framework. Results indicate that, in principle, tariffs could be an effective deterrent for weak protections for intellectual property. Moreover, weakening enforcement may be a strong deterrent for raising tariffs. These results combined indicate that there is scope for international cooperation on these fronts.
Economic and Trade Impacts of Intellectual Property Rights
2014
Intellectual Property related products have gained prominence in international trade volume during the last couple of decades. Concurrently, the international legal regime on Intellectual Property Rights is also expanding; as a result, the debate on intellectual property has intensified in many forums including in the economic, trade, legal, political, and public realms. The main question at these forums is the debate centered on whether Intellectual Property Rights create positive trade and economic impacts as is assumed by policy makers. The objective of this paper is to examine the relationship between Intellectual Property Rights and economic and trade indicators. To that end, this paper provides an academic review of the legal documentation on Intellectual Property Rights and related empirical evidence from previous academic research. In addition to trade impacts, economic impacts on Intellectual Property Rights are borne through five main channels: innovation, technology trans...
How trade related is Intellectual property right (IPRs) protection? Extant studies examining the relationship between domestic Intellectual Property Rights (IPRs) protection and trade focus predominately on imports whilst neglecting exports. This paper focuses on the latter, further examining the effect of domestic IPRs on the margins of exports. Results from the study reveal That IPRs are trade-related and that it can be a tool for stimulating exports in both developed and developing countries. We also find that the level of IPRs in the exporting country matters more to the exporter than the level of IPRs in the importing country. Examining the different export margins, we obtain robust evidence suggesting that stronger IPRs in the exporter Country works largely along the extensive margin, with coefficients on the intensive margin tending to be insignificant. We discuss the welfare and growth implications of these findings in the conclusion