Trade-Related Intellectual Property Rights: Theory and Empirics
AbstractThe WTO inspired strengthening of intellectual property rights (IPRs) in developing countries remains highly controversial even 15 years after the 1994 TRIPs agreement. This paper employs both theory and empirics to assess how a strengthening of IPRs affects international technology diffusion by altering the volume of high-tech exports into developing countries. In the context of a North-South general equilibrium model,stronger IPRs encourage Northern firms to introduce new high-tech products in the South. High-tech exports to the South rise, while low-tech exports may fall. International technology diffusion does not necessarily fall. These theoretical predictions are examined empirically. On average,developing countries that strengthened their IPRs under the TRIPs agreement saw an increase of approximately $50 billion (1994 US dollars) in their high-tech imports. This amount is equivalent to a 13% increase in their annual value of high-tech imports.
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Bibliographic InfoPaper provided by Department of Economics, University of Calgary in its series Working Papers with number 2009-02.
Date of creation: 29 Jan 2009
Date of revision: 03 Feb 2009
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-07 (All new papers)
- NEP-INO-2009-02-07 (Innovation)
- NEP-INT-2009-02-07 (International Trade)
- NEP-IPR-2009-02-07 (Intellectual Property Rights)
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