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Does Host Country Intellectual Property Protection Matter for Technology-Intensive Import Flows?

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  • Ridwan Ah Sheikh

    (Department of Economics, Delhi School of Economics)

  • Sunil Kanwar

    (Department of Economics, Delhi School of Economics)

Abstract

Using disaggregated industry level data for 1976-2019, we find, unlike much of the received literature, that patent rights have a strong positive effect on developing country knowledge-intensive imports. Using the new gravity model of Anderson-van Wincoop, there is strong evidence of a market expansion effect across knowledge-intensive industries. The overall elasticity of knowledge-intensive imports w.r.t patent rights is 0.28, with considerable variation across industries, being 0.55 for electronics, 0.44 for rubber manufactures, and 0.32 for pharmaceuticals. This increase in imports appears to be (mainly) driven by quantity increases, not just price increases. Our results survive multiple robustness checks. Key Words: Imports, Intellectual property rights, Gravity model, Multilateral resistance JEL Codes: F13, F14, O34

Suggested Citation

  • Ridwan Ah Sheikh & Sunil Kanwar, 2022. "Does Host Country Intellectual Property Protection Matter for Technology-Intensive Import Flows?," Working papers 329, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:329
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    Keywords

    imports; intellectual property rights; gravity model; multilateral resistance jel codes: f13; f14; o34;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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