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Do Patent Rights Regimes Matter?

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  • Catherine Y. Co

Abstract

The paper asks whether exports are affected by importers' patent rights regimes using a gravity trade equation. US export data to 71 countries from 1970 to 1992 are used. A two-way random-effects panel indicates that patent rights regimes per se do not matter; they matter with importing countries' imitative abilities. For a country with an "average" imitative ability, US R&D-intensive exports increase by 4-9% for a unit increase in the patent rights index; a unit increase in the patent rights index leads to a drop in US non-R&D-intensive exports by about 8-11%. Copyright Blackwell Publishing Ltd 2004.

Suggested Citation

  • Catherine Y. Co, 2004. "Do Patent Rights Regimes Matter?," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 359-373, August.
  • Handle: RePEc:bla:reviec:v:12:y:2004:i:3:p:359-373
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    References listed on IDEAS

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    1. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99.
    2. G. M. Grossman & K. Rogoff (ed.), 1995. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 3, number 3.
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    Cited by:

    1. Co, Catherine Yap, 2010. "Intra- and inter-firm US trade," International Review of Economics & Finance, Elsevier, vol. 19(2), pages 260-277, April.
    2. Campi, Mercedes & Dueñas, Marco, 2016. "Intellectual Property Rights and International Trade of Agricultural Products," World Development, Elsevier, vol. 80(C), pages 1-18.
    3. Ding Weina & Marianna Gilli & Massimiliano Mazzanti & Francesco Nicolli, 2016. "Green inventions and greenhouse gas emission dynamics: a close examination of provincial Italian data," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(2), pages 247-263, April.
    4. Briggs, Kristie, 2013. "Does patent harmonization impact the decision and volume of high technology trade?," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 35-51.
    5. Keith E. MASKUS & Lei YANG, 2013. "The Impacts of Post-TRIPS Patent Reforms on the Structure of Exports," Discussion papers 13030, Research Institute of Economy, Trade and Industry (RIETI).
    6. Briggs Kristie, 2012. "Patents, Technology Adaptation, and Exports to Developing Countries," Global Economy Journal, De Gruyter, vol. 12(1), pages 1-20, March.
    7. Canals, Claudia & Şener, Fuat, 2014. "Offshoring and intellectual property rights reform," Journal of Development Economics, Elsevier, vol. 108(C), pages 17-31.
    8. Ivus, Olena, 2010. "Do stronger patent rights raise high-tech exports to the developing world?," Journal of International Economics, Elsevier, vol. 81(1), pages 38-47, May.
    9. Montobbio, Fabio & Sterzi, Valerio, 2013. "The Globalization of Technology in Emerging Markets: A Gravity Model on the Determinants of International Patent Collaborations," World Development, Elsevier, vol. 44(C), pages 281-299.
    10. Hsu, Judy & Tiao, Yu-En, 2015. "Patent rights protection and foreign direct investment in Asian countries," Economic Modelling, Elsevier, vol. 44(C), pages 1-6.
    11. Demir, Caner, 2016. "Do Technology Transfer and IPR Spur Domestic Innovation?: An International Panel Data Analysis," MPRA Paper 76693, University Library of Munich, Germany.
    12. Chih-Hai Yang & Yi-Ju Huang, 2009. "Do Intellectual Property Rights Matter To Taiwan'S Exports? A Dynamic Panel Approach," Pacific Economic Review, Wiley Blackwell, vol. 14(4), pages 555-578, October.
    13. Rod Falvey & Neil Foster & David Greenaway, 2009. "Trade, imitative ability and intellectual property rights," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 373-404, October.
    14. Archontakis, Fragiskos & Varsakelis, Nikos C., 2017. "Patenting abroad: Evidence from OECD countries," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 62-69.
    15. Park, Walter G., 2008. "International patent protection: 1960-2005," Research Policy, Elsevier, vol. 37(4), pages 761-766, May.
    16. Yungho Weng & Chih-Hai Yang & Yi-Ju Huang, 2009. "Intellectual property rights and U.S. information goods exports: the role of imitation threat," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(2), pages 109-134, May.
    17. Daniel Nepelski & Giuditta De Prato, 2012. "Does the Patent Cooperation Treaty work? A global analysis of patent applications by non-residents," JRC Working Papers JRC79541, Joint Research Centre (Seville site), revised Nov 2012.
    18. Mercedes Delgado & Margaret Kyle & Anita M. McGahan, 2013. "Intellectual Property Protection and the Geography of Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 733-762, September.
    19. 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.
    20. Damien Dussaux, Antoine Dechezlepretre, Matthieu Glachant, 2018. "Intellectual property rights protection and the international transfer of low-carbon technologies," GRI Working Papers 323, Grantham Research Institute on Climate Change and the Environment.

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