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The Effect of Regional Trade Agreements on Technology Spillovers through International Trade

  • Naoto Jinji
  • Xingyuan Zhang
  • Shoji Haruna

We investigate empirically how regional integration affects technology spillovers among trade partners. We measure the extent of technology spillovers by using patent citation data from the United States Patent and Trademark Office. Our main finding, from employing the gravity model, is that technology spillovers between trade partners are higher if these countries are signatories to the same regional free trade agreement. This suggests that regional integration has a positive effect on technology spillovers. Another finding is that the GATT/WTO has a positive effect on technology spillovers among member countries.

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File URL: http://www.econ.kyoto-u.ac.jp/projectcenter/Paper/e-11-006.pdf
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Paper provided by Graduate School of Economics Project Center, Kyoto University in its series Discussion papers with number e-11-006.

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Length: 20 pages
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:kue:dpaper:e-11-006
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  1. Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August.
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  8. Yasusada Murata & Ryo Nakajima & Ryosuke Okamoto & Ryuichi Tamura, 2014. "Localized Knowledge Spillovers and Patent Citations: A Distance-Based Approach," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 967-985, December.
  9. Peter Thompson & Melanie Fox Kean, 2004. "Patent Citations and the Geography of Knowledge Spillovers: A Reassessment," Working Papers 0401, Florida International University, Department of Economics.
  10. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
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  14. Peter J. Lloyd & Donald Maclaren, 2004. "Gains and Losses from Regional Trading Agreements: A Survey," The Economic Record, The Economic Society of Australia, vol. 80(251), pages 445-467, December.
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  17. Bin Xu & Jianmao Wang, 1999. "Capital Goods Trade and R&D Spillovers in the OECD," Canadian Journal of Economics, Canadian Economics Association, vol. 32(5), pages 1258-1274, November.
  18. Horacio E. Sobarzo, 1992. "A General Equilibrium Analysis of the Gains from Trade for the Mexican Economy of a North American Free Trade Agreement," The World Economy, Wiley Blackwell, vol. 15(1), pages 83-100, 01.
  19. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
  20. Shoji Haruna & Naoto Jinji & Xingyuan Zhang, 2010. "Patent citations, technology diffusion, and international trade: evidence from Asian countries," Journal of Economics and Finance, Springer, vol. 34(4), pages 365-390, October.
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  22. Brown, D.K. & Deardorff, A.V. & Stern, R.M., 1991. "A North American Free Trade Agreement: Analytical Issues and A Computational Assessment," Working Papers 289, Research Seminar in International Economics, University of Michigan.
  23. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2010. "Trade Patterns and International Technology Spillovers:Theory and Evidence from Patent Citations," Discussion papers e-10-006, Graduate School of Economics Project Center, Kyoto University, revised Mar 2011.
  24. Maurseth, Per Botolf & Verspagen, Bart, 2002. " Knowledge Spillovers in Europe: A Patent Citations Analysis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 531-45, December.
  25. JINJI Naoto & ZHANG Xingyuan & HARUNA Shoji, 2011. "Does the Structure of Multinational Enterprises' Activity Affect Technology Spillovers?," Discussion papers 11027, Research Institute of Economy, Trade and Industry (RIETI).
  26. Rebecca Henderson & Adam Jaffe & Manuel Trajtenberg, 2005. "Patent Citations and the Geography of Knowledge Spillovers: A Reassessment: Comment," American Economic Review, American Economic Association, vol. 95(1), pages 461-464, March.
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