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Intellectual Property Provisions in North-South Trade Agreements

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Abstract

Using a repeated game approach, this paper models a North-South trade agreement under which North offers South improved market access (via a tariff reduction) if South agrees to prevent local imitation by strengthening its protection of intellectual property rights (IPRs). We show that such an agreement arises in equilibrium if South's imitative capacity is neither too high nor too low. The paper also considers a scenario where Southern protection of IPRs is induced via a North-South transfer. A comparison of the two instruments shows that one instrument does not unambiguously dominate the other in terms of sustaining cooperation. We also analyze whether and how the availability of the second instrument affects cooperation given that one instrument is already available.

Suggested Citation

  • Saggi, Kamal, 2007. "Intellectual Property Provisions in North-South Trade Agreements," CEPR Discussion Papers 6460, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:6460
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    References listed on IDEAS

    as
    1. Bernard Hoekman & Kamal Saggi, 2018. "Tariff bindings and bilateral cooperation on export cartels," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 12, pages 283-298, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    Keywords

    Intellectual property rights; International cooperation; Market access; Tariffs; Trade agreements; Transfers;
    All these keywords.

    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
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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