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Intellectual property rights protection and quality upgrading: Evidence from China

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  • Song, Xueyin
  • Huang, Xianhai
  • Qing, Tao

Abstract

This study analyzes the effect of domestic and foreign intellectual property rights (IPR) protection on quality upgrading. We build a tractable model of heterogeneous firms, endogenous innovation scale, and endogenous quality choice. The model shows that IPR protection affects firms’ export quality through two opposing channels: the innovation and threshold effects, which promote and inhibit quality upgrading, respectively. We examine the overall effect of these channels using firm-level data from China across 2000–2007. We find that: (ⅰ) both domestic and foreign IPR protection positively affect export quality upgrading, so innovation effect is dominant; (ⅱ) the impact of domestic IPR protection is greater than that of foreign IPR protection; and (iii) various methods, such as generalized method of moments and difference in differences, are used to test the conclusions of this study, indicating robust results.

Suggested Citation

  • Song, Xueyin & Huang, Xianhai & Qing, Tao, 2021. "Intellectual property rights protection and quality upgrading: Evidence from China," Economic Modelling, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:ecmode:v:103:y:2021:i:c:s0264999321001917
    DOI: 10.1016/j.econmod.2021.105602
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    References listed on IDEAS

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    Cited by:

    1. Fan Duan & Yifei Li & Tenglong Zhong, 2023. "International Patent Cooperation, Patent Prosecution Highway Agreements, and Export Product Quality," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(6), pages 111-133, November.
    2. Poyago-Theotoky, Joanna & Tsai, Yingyi, 2023. "Universally strong IPR protection and global welfare: A market-penetration perspective," Economic Modelling, Elsevier, vol. 124(C).
    3. Yuan Zhu & Bingyue Wan & Lixin Tian, 2022. "Protection of Intellectual Property Rights, Financial Development and Green Low-Carbon Endogenous Economic Growth," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    4. 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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    More about this item

    Keywords

    IPR protection; Innovation effect; Threshold effect; Quality upgrading;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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