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Intellectual Property Rights, Trade Agreements,and International Trade

Author

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  • Mercedes Campi

    (Instituto Interdisciplinario de Economía Política de Buenos Aires - UBA - CONICET)

  • Marco Dueñas

    (Universidad de Bogotá Jorge Tadeo Lozano)

Abstract

The global process of strengthening and harmonization of intellectual property rights (IPRs) systems has been intensied in the last twenty ve years by the signing of trade agreements (TAs) that include chapters with intellectual property (IP) provisions and other non-trade-related issues. This paper provides a rst exploration of whether and how the signing of TAs with IP chapters in uences bilateral trade ows for a panel of 122 countries and the period 1995-2013. We address methodological issues related to the assessment of the eect 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 eects of TAs on bilateral trade in a more dynamic fashion using a panel data approach based on the gravity model. We perform our analysis for trade in low- and high-IP intensive products. We found that both types of TAs increase bilateral trade. However, TAs with no IPRs chapters have a stronger positive eect on trade, while TAs with IP chapters have a stronger eect if we include lags to consider that they might need a longer implementation time. We also found that the eects depend on the development level of countries and, to a lesser extent, on the IP intensity of products. We found a clear positive eect for developed countries, but we do not observe 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 eort related with IP reforms.

Suggested Citation

  • Mercedes Campi & Marco Dueñas, 2017. "Intellectual Property Rights, Trade Agreements,and International Trade," Documentos de trabajo del Instituto Interdisciplinario de Economía Política (IIEP-BAIRES) 2017-21, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política (IIEP-BAIRES).
  • Handle: RePEc:ake:iiepdt:201721
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    Cited by:

    1. 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.
    2. 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.
    3. Maskus,Keith E. & Ridley,William Clifton, 2021. "Trade Impacts of Intellectual-Property-Related PTAs : Evidence from Using the World Bank Deep Trade Agreements Database," Policy Research Working Paper Series 9659, The World Bank.
    4. Ana Maria Santacreu, 2021. "Dynamic Gains from Trade Agreements with Intellectual Property Provisions," Working Papers 2021-010, Federal Reserve Bank of St. Louis, revised 30 May 2022.
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    7. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Working Papers hal-02548689, HAL.
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    9. Willoughby, Kelvin W. & Mullina, Nadezhda, 2021. "Reverse innovation, international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation," Technology in Society, Elsevier, vol. 67(C).
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    11. 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.
    12. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Post-Print halshs-02899973, HAL.
    13. 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.
    14. Doanh, Nguyen Khanh & Gam, Nguyen Thi & Heo, Yoon, 2022. "The impact of intellectual property rights protection on trade: The role of a “third country” in market power and market expansion effects," Economic Systems, Elsevier, vol. 46(1).
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    16. 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.
    17. Christopher M. Dent, 2021. "Trade, Climate and Energy: A New Study on Climate Action through Free Trade Agreements," Energies, MDPI, vol. 14(14), pages 1-30, July.
    18. 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.
    19. Corrocher, Nicoletta & Mancusi, Maria Luisa, 2021. "International collaborations in green energy technologies: What is the role of distance in environmental policy stringency?," Energy Policy, Elsevier, vol. 156(C).
    20. Mhamed-Ali El-Aroui & Selma Dellagi & Fouad Ben Abdelaziz, 2021. "The Dilemma of Intellectual Property Agreements and R&D in Developing Economies: A Game Theory Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(3), pages 427-450, September.

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    More about this item

    Keywords

    Intellectual Property Rights; International Trade; Trade Agreements; 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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