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Intellectual Property Enforcement, Exports and Productivity: Evidence from China

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  • Huiwen Lai
  • Keith E. Maskus
  • Lei Yang

Abstract

We study how provincial-level enforcement of intellectual property rights (IPRs) affects Chinese firms’ decisions regarding exit, export, and the channels through which to receive technology transfer. Our findings provide insights into how variations in IPRs enforcement alter productivity. Our model combines the standard theory of heterogeneous firms with the endogenous choices of those firms concerning how they absorb international technologies through imitation or licensing. We show that, in this setting, the exit and export cutoff productivities differ from those in the standard environment, leading to a different sorting mechanism. We also predict that stronger IPRs change the decisions firms make concerning their mode of technology transfer, further altering their productivity and export possibilities. Empirical tests based on a comprehensive dataset of Chinese firms from 2000 to 2006 support the model predictions.

Suggested Citation

  • Huiwen Lai & Keith E. Maskus & Lei Yang, 2018. "Intellectual Property Enforcement, Exports and Productivity: Evidence from China," RSCAS Working Papers 2018/39, European University Institute.
  • Handle: RePEc:rsc:rsceui:2018/39
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    References listed on IDEAS

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    More about this item

    Keywords

    Intellectual Property Enforcement; Exports; Firm Heterogeneity;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • 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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