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Is trade in electrical and electronic products sensitive to IPR protection? Evidence from China’s exports

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  • Mahfuz Kabir
  • Ruhul Salim

Abstract

This article attempts to provide the first empirical evidence on the effect of intellectual property rights (IPRs) on China’s export of electrical and electronic products. It adopts a gravity model for unbalanced panel data of China’s 146 important trading partners over the period of 2002--2012. To eliminate the effects of FDI in determining the linkage between IPR and exports, the panel excludes the destination countries and territories that invest in China. The results reveal that the level of IPR protection in destination countries has a positive impact on China’s flow of exports. Further analysis on data disaggregated by IPR score demonstrates that a higher level of IPR protection in destination countries and territories is positively linked with China’s exports of these items in each of the IPR protection clusters and indicates a strong market power effect by the interplay between R&D expenditure and IPR in the destinations. Finally, both market power and market expansion effects are found to be prevalent in the destinations, as implied by the coefficient of IPR protection disaggregated by income level of China’s export destinations. The results generally resemble those in the literature that describe the linkage between IPR protection and trade flows.

Suggested Citation

  • Mahfuz Kabir & Ruhul Salim, 2016. "Is trade in electrical and electronic products sensitive to IPR protection? Evidence from China’s exports," Applied Economics, Taylor & Francis Journals, vol. 48(21), pages 1991-2005, May.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1991-2005
    DOI: 10.1080/00036846.2015.1111990
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    Cited by:

    1. Jinqiu Li & Yuyou Zou & Mingqiu Li, 2022. "Synergetic evolution of the regional intellectual property management systems in China based on logistic model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3736-3750, December.
    2. Asid, Rozilee & khalifah, noor & Mohd Nor, Abu Hassan Shaari & Sarmidi, Tamat, 2017. "Capital Goods Export to Developing Economies: Implication from Exporter’s Level of Technology and Destination Country’s Threat of Imitation," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 51(2), pages 85-102.

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