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Intellectual Property Rights Protection and Trade

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  • Auriol, Emmanuelle
  • Biancini, Sara
  • Paillacar, Rodrigo

Abstract

The paper studies developing countries' incentives to protect intellectual property rights (IPR). IPR enforcement is U-shaped in a country's market size relative to the aggregated market size of its trade partners: small/poor countries protect IPR to get access to advanced economies' markets, while large emerging countries tend to free-ride on rich countries' technology to serve their internal demand. Asymmetric protection of IPR, strict in the North and lax in the South, leads in many cases to a higher level of innovation than universal enforcement. An empirical analysis conducted with panel data covering 112 countries and 45 years supports the theoretical predictions.

Suggested Citation

  • Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2015. "Intellectual Property Rights Protection and Trade," CEPR Discussion Papers 10602, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10602
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    References listed on IDEAS

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    Cited by:

    1. Sara Biancini & Pamela Bombarda, 2017. "Intellectual Property Rights, Multinational Firms and Technology Transfers," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2017-12, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    2. Emmanuelle Auriol & Sara Biancini & Rodrigo Paillacar, 2013. "Universal Intellectual Property Rights: Too Much of a Good Thing?," CESifo Working Paper Series 4292, CESifo Group Munich.
    3. Jean Bonnet & Sana El Harbi & Faten Gazzah, 2017. "Exploring the relationship between micro-enterprises and regional development: Evidence from Tunisia," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2017-14, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

    More about this item

    Keywords

    developing countries; imitation; innovation; intellectual property rights; oligopoly; trade policy;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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