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Patent Rights and Trade: Analysis of Biological Products, Medicinals and Botanicals, and Pharmaceuticals

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  • Pamela J. Smith

Abstract

This article analyzes the effects of foreign patent rights on U.S. bilateral exports. The empirical analysis covers three highly disaggregated drug industries over three decades. We estimate bilateral trade equations for each industry using cross-country data on the strength of national patent rights. The findings show that strong foreign patent rights enhance the market power of U.S. drug exporters across countries with weak imitative abilities. Alternatively, strong foreign patent rights stimulate the market expansion of U.S. drug exports across countries with strong imitative abilities. These effects are larger in magnitude during the 1980–90s relative to the 1970s. Copyright 2002, Oxford University Press.

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  • Pamela J. Smith, 2002. "Patent Rights and Trade: Analysis of Biological Products, Medicinals and Botanicals, and Pharmaceuticals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 495-512.
  • Handle: RePEc:oup:ajagec:v:84:y:2002:i:2:p:495-512
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    Cited by:

    1. Jensen, Helen H. & Basiotis, P. Peter, 1993. "Food Safety/Food Quality Data," Emerging Data Issues in Food Demand Analysis, Proceedings of the S216 Workshop, October 1993 11849, Regional Research Project S-278 Food Demand, Nutrition and Consumer Behavior.
    2. Love, James H. & Ganotakis, Panagiotis, 2013. "Learning by exporting: Lessons from high-technology SMEs," International Business Review, Elsevier, pages 1-17.
    3. Rockett, Katharine, 2012. "Perspectives on the knowledge-based society: An introduction to the special issue," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages =1-22.
    4. Eaton, Derek J.F., 2009. "Trade and Intellectual Property Rights in the Agricultural Seed Sector," 2009 Conference, August 16-22, 2009, Beijing, China 51782, International Association of Agricultural Economists.
    5. Wisniewski, Suzanne L.W., 2003. "Effects Of Foreign Intellectual Property Rights On U.S. Bilateral Exports Of Biotechnology Related Agricultural Inputs," 2003 Annual meeting, July 27-30, Montreal, Canada 22222, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Briggs Kristie, 2012. "Patents, Technology Adaptation, and Exports to Developing Countries," Global Economy Journal, De Gruyter, pages 1-20.
    7. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers 14606, International Agricultural Trade Research Consortium.
    8. 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, pages 109-134.
    9. Fedderke, J.W. & Romm, A.T., 2006. "Growth impact and determinants of foreign direct investment into South Africa, 1956-2003," Economic Modelling, Elsevier, pages 738-760.
    10. Briggs, Kristie, 2013. "Does patent harmonization impact the decision and volume of high technology trade?," International Review of Economics & Finance, Elsevier, pages 35-51.
    11. Batres-Marquez, S. Patricia & Jensen, Helen H. & Brester, Gary W., 2003. "Salvadoran Consumption of Ethnic Foods in the United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(02), July.
    12. Wright, Brian D. & Pardey, Philip G. & Nottenburg, Carol & Koo, Bonwoo, 2007. "Agricultural Innovation: Investments and Incentives," Handbook of Agricultural Economics, Elsevier.
    13. Palangkaraya, Alfons & Jensen, Paul H. & Webster, Elizabeth, 2017. "The effect of patents on trade," Journal of International Economics, Elsevier, pages 1-9.

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