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Bilateral intra-industry trade flows and intellectual property rights protection: first empirical evidence

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  • Nasser Al-Mawali
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    Abstract

    This study provides the first empirical evidence on the effects of intellectual property rights (IPRs) protection on bilateral intra-industry trade (IIT) flows. The empirical investigation is based on pooled South African data and takes advantage of the theoretical distinction between horizontal and vertical IIT. A gravity equation of international trade is estimated in the context of fixed and random effects models. The principal findings suggest that IPRs and imitation abilities separately are not important factors in determining IIT flows. However, the interaction between them is important.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 12 (2005)
    Issue (Month): 13 ()
    Pages: 823-828

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    Handle: RePEc:taf:apeclt:v:12:y:2005:i:13:p:823-828

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    1. John Thornton & Alessandro Goglio, 2002. "Regional bias and intra-regional trade in southeast Asia," Applied Economics Letters, Taylor & Francis Journals, vol. 9(4), pages 205-208.
    2. S. Choudhry & A. Abu-Bakar & P. Wylie, 2000. "A yen bloc in Pacific Asia: natural economic symbiosis or overblown rhetorics?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(4), pages 215-218.
    3. Breusch, T S & Pagan, A R, 1980. "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 239-53, January.
    4. Smith, Pamela J., 1999. "Are weak patent rights a barrier to U.S. exports?," Journal of International Economics, Elsevier, vol. 48(1), pages 151-177, June.
    5. Rose, Andrew, 1999. "One Money, One Market: Estimating the Effect of Common Currencies on Trade," Seminar Papers 678, Stockholm University, Institute for International Economic Studies.
    6. Marius Brulhart & Michael Thorpe, 2000. "Intra-industry trade and adjustment in Malaysia: puzzling evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 7(11), pages 729-733.
    7. Subhash Sharma & Soo Chua, 2000. "ASEAN: economic integration and intra-regional trade," Applied Economics Letters, Taylor & Francis Journals, vol. 7(3), pages 165-169.
    8. Johan Torstensson, 1996. "Can factor proportions explain vertical intra-industry trade?," Applied Economics Letters, Taylor & Francis Journals, vol. 3(5), pages 307-309.
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    Cited by:
    1. Fukui, E. Tani & Hammer, Alexander B. & Jones, Lin Z., 2013. "Are U.S. exports influenced by stronger IPR protection measures in recipient markets?," Business Horizons, Elsevier, vol. 56(2), pages 179-188.

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