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Do Stronger Intellectual Property Rights Raise High-Tech Exports to the Developing World?

  • Olena Ivus

    (University of Calgary)

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    Despite over 20 years of debate, the TRIPs agreement remains very contentious. This paper evaluates the impact of strengthening intellectual property rights (IPRs) in developing countries on developed countries' exports over the 1962-2000 period. Colonial origin is used to isolate exogenous variation in IPRs. The impact is then identified by examining the cross-industry difference in sensitivity to IPRs. I find that the increase in IPRs made in response to the TRIPs agreement added about $50 billion (1994 US dollars) to the annual value of developed countries' exports in IPR-sensitive industries. The increase in the value of exports was driven by a quantity, rather than a price, increase.

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    Paper provided by Department of Economics, University of Calgary in its series Working Papers with number 2008-27.

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    Date of creation: 12 Jan 2008
    Date of revision: 01 Nov 2008
    Handle: RePEc:clg:wpaper:2008-27
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    1. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
    2. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
    3. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    4. Ishac Diwan & Dani Rodrik, 1989. "Patents, Appropriate Technology, and North-South Trade," NBER Working Papers 2974, National Bureau of Economic Research, Inc.
    5. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    6. Smith, Pamela J., 1999. "Are weak patent rights a barrier to U.S. exports?," Journal of International Economics, Elsevier, vol. 48(1), pages 151-177, June.
    7. repec:tpr:qjecon:v:114:y:1999:i:1:p:83-116 is not listed on IDEAS
    8. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
    9. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-29, October.
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