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Intellectual property rights, trade agreements, and international trade

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  • Campi, Mercedes
  • Dueñas, Marco

Abstract

The global process of strengthening and harmonization of intellectual property rights (IPRs) systems has been intensified in the last twenty five years by the signing of trade agreements (TAs) that include chapters with intellectual property (IP) provisions and other trade-related issues. This paper provides a first exploration of whether and how the signing of TAs with IP chapters influences bilateral trade flows for a balanced panel of 110 countries and the period 1995–2013. We address methodological issues related to the assessment of the effect of TAs on bilateral trade. We use matching econometrics to evaluate the treatment of TAs with and without IP chapters. In addition, we estimate the effects of TAs on bilateral trade in a more dynamic fashion using a panel data approach based on the gravity model. Also, we perform our analysis for trade in low- and high-IP intensive products. We found that both types of TAs increase bilateral trade but TAs with no IPRs chapters have a stronger positive effect on trade. However, if we include lags to consider that TAs with IP chapters might need a longer implementation time, the net expected increase on trade is similar for both types of TAs. We also found that the effects depend on the development level of countries and on the IP intensity of products. We found a clear positive effect for developed countries, but we do not observe important gains for developing countries in all sectors and to all destinations derived from TAs with IP chapters. This raises the question of whether trade gains can compensate the effort related with IP reforms.

Suggested Citation

  • Campi, Mercedes & Dueñas, Marco, 2019. "Intellectual property rights, trade agreements, and international trade," Research Policy, Elsevier, vol. 48(3), pages 531-545.
  • Handle: RePEc:eee:respol:v:48:y:2019:i:3:p:531-545
    DOI: 10.1016/j.respol.2018.09.011
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    Cited by:

    1. Inmaculada Martínez-Zarzoso & Santiago Chelala, 2021. "Trade agreements and international technology transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(3), pages 631-665, August.
    2. Canals, Claudia & Klein, Michael A & Sener, Fuat, 2021. "Intellectual Property-Related Preferential Trade Agreements and Offshoring to Developing Countries," MPRA Paper 107694, University Library of Munich, Germany.
    3. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Post-Print halshs-02899973, HAL.
    4. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02548689, HAL.
    5. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Documents de travail du Centre d'Economie de la Sorbonne 20006, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    6. Mercedes Campi & Alessandro Nuvolari, 2021. "Intellectual Property Rights and Agricultural Development: Evidence from a Worldwide Index of IPRs in Agriculture (1961-2018)," Journal of Development Studies, Taylor & Francis Journals, vol. 57(4), pages 650-668, April.
    7. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02899973, HAL.
    8. Inmaculada Martínez-Zarzoso & Santiago Chelala, 2021. "Trade agreements and international technology transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(3), pages 631-665, August.
    9. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Working Papers hal-02548689, HAL.
    10. Alassane D. Yeo & Aimin Deng, 2019. "The trade policy effect in international trade: case of Pakistan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-17, December.

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    More about this item

    Keywords

    Intellectual property rights; Trade agreements; International trade; Matching econometrics; Gravity model;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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