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The TRIPS Agreement as a Coercive Threat: Estimating the Effects of Trade Ties on IPR Enforcement

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  • Cardwell, Ryan T.
  • Ghazalian, Pascal L.

Abstract

Negotiators from developed countries pushed hard for the inclusion of the TRIPS Agreement in the WTO set of agreements because it was viewed as a potentially effective method of coercing developing countries to strengthen their protection of intellectual property rights (IPR). We investigate whether the threat of cross-agreement retaliation, which could be authorized in disputes regarding the TRIPS Agreement, is effective in changing countries’ IPR protection regimes. The results from a panel empirical model suggest that both the TRIPS Agreement and the strength of trade ties with developed countries are important determinants of IPR protection, but that the vulnerability to potential trade losses through cross-agreement retaliation is not a uniformly significant determinant across geo-economic regions. We conclude that the threat of trade retaliation is just one important determinant of countries’ institutional protection of IPR.
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Suggested Citation

  • Cardwell, Ryan T. & Ghazalian, Pascal L., 2012. "The TRIPS Agreement as a Coercive Threat: Estimating the Effects of Trade Ties on IPR Enforcement," Trade Policy Briefs 145974, Canadian Agricultural Trade Policy Research Network.
    • Handle: RePEc:ags:catptp:145974
    DOI: 10.22004/ag.econ.145974
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    1. Cardwell, Ryan T. & Ghazalian, Pascal L., 2012. "The TRIPS Agreement as a Coercive Threat: Estimating the Effects of Trade Ties on IPR Enforcement," Working Papers 142376, Canadian Agricultural Trade Policy Research Network.
    2. Revadee Yampoin & William Kerr, 1998. "Can trade measures induce compliance with trips?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 3(2), pages 165-182.
    3. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    4. Spadano, Lucas Eduardo F. A., 2008. "Cross-agreement retaliation in the WTO dispute settlement system: an important enforcement mechanism for developing countries?," World Trade Review, Cambridge University Press, vol. 7(3), pages 511-545, July.
    5. Marron, Donald B & Steel, David G, 2000. "Which Countries Protect Intellectual Property? The Case of Software Piracy," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 159-174, April.
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    1. Cardwell, Ryan T. & Ghazalian, Pascal L., 2012. "The TRIPS Agreement as a Coercive Threat: Estimating the Effects of Trade Ties on IPR Enforcement," Trade Policy Briefs 145974, Canadian Agricultural Trade Policy Research Network.

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