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Intellectual Property-Related Preferential Trade Agreements and the Composition of Trade

Author

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  • Keith E. Maskus
  • William Ridley

Abstract

We study the role of preferential trade agreements (PTAs) with complex chapters covering intellectual property rights (IPRs) in determining the magnitude and composition of countries’ trade. Changes in the global IPRs environment have increasingly been negotiated within the terms of PTAs. Despite the proliferation of PTAs with strong IPRs standards, little attention has been paid to their effects on the trade of member countries. Using a carefully designed empirical framework, we find that PTAs, where one partner is either the United States, the European Union, or the European Free Trade Assocation, with rigorous IPRs chapters have significant impacts on members’ aggregate trade. The results are further broken down by income groups and the composition of sectoral trade. The findings accord with predicted relationships from previous research on IPRs and trade and suggest that regulatory aspects of trade agreements have important cross-border impacts. This possibility has been little studied to date.

Suggested Citation

  • Keith E. Maskus & William Ridley, 2016. "Intellectual Property-Related Preferential Trade Agreements and the Composition of Trade," RSCAS Working Papers 2016/35, European University Institute.
    • Handle: RePEc:rsc:rsceui:2016/35
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    References listed on IDEAS

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    Cited by:

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    2. Jacopo Timini & Francesca Viani, 2022. "A highway across the Atlantic? Trade and welfare effects of the EU-Mercosur agreement," International Economics, CEPII research center, issue 169, pages 291-308.
    3. Claudia Canals & Michael A. Klein & Fuat Şener, 2023. "Intellectual property‐related preferential trade agreements and US offshoring to developing countries," Review of International Economics, Wiley Blackwell, vol. 31(4), pages 1442-1475, September.
    4. Claire Brunel & Thomas Zylkin, 2022. "Do cross‐border patents promote trade?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 379-418, February.
    5. Campi, Mercedes & Dueñas, Marco, 2019. "Intellectual property rights, trade agreements, and international trade," Research Policy, Elsevier, vol. 48(3), pages 531-545.
    6. Elizabeth M Moore & Luis Alfonso Dau & Santiago Mingo, 2021. "The effects of trade integration on formal and informal entrepreneurship: The moderating role of economic development," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 746-772, June.
    7. Doanh, Nguyen Khanh & Gam, Nguyen Thi & Heo, Yoon, 2022. "The impact of intellectual property rights protection on trade: The role of a “third country” in market power and market expansion effects," Economic Systems, Elsevier, vol. 46(1).
    8. lv, Kangjuan & Pan, Minjie & Huang, Li & Song, Daqiang & Qian, Xinlei, 2023. "Can intellectual property rights protection reduce air pollution? A quasi-natural experiment from China," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 210-222.

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    Keywords

    China; intellectual property; IPRs; innovation policy; trade agreements;
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