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Do trade agreements contribute to technology internationalization?

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  • Inmaculada Martínez-Zarzoso
  • Daniela Arregui Coka

Abstract

This paper investigates the effect of shallow and deep free trade agreements (FTAs) on technology internationalization. The main novelty is the use of cross-country patenting applications and co-patenting as main proxies to estimate a gravity model using advanced panel-data techniques that account for endogeneity and third country effects. The model is applied to a panel of 6,480 country pairs comprising high and middle-income countries for the period 1980–2015. The main results indicate that FTAs lead to a significant increase in technology internationalization, especially when they cover trade in goods and services. This effect increases over time in the period following ratification, and contingent both on the policy scope of the FTA and the economic distance between trading partners. Moreover, countries that are geographically and institutionally closer exchange more knowledge and technology. Provisions on intellectual property rights within FTAs contribute to the positive effect.

Suggested Citation

  • Inmaculada Martínez-Zarzoso & Daniela Arregui Coka, 2025. "Do trade agreements contribute to technology internationalization?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 34(7), pages 1829-1871, October.
    • Handle: RePEc:taf:jitecd:v:34:y:2025:i:7:p:1829-1871
    DOI: 10.1080/09638199.2025.2482549
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    Cited by:

    1. Liu, Bin & Liu, Chunmiao & Li, Chuanchuan & Chen, Xiao, 2026. "The impact of digital trade rules on firms' international joint patent applications," Research Policy, Elsevier, vol. 55(1).

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