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Domestic intellectual property rights protection and exports: Accessing the credit channel

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  • Ndubuisi, Gideon

    () (UNU-MERIT)

Abstract

Recent studies on the export effects of domestic intellectual property rights protection focus on the innovation, border and technology transfer channels to underscore the pathways by which effective domestic IPRs protection influences own country's export. I extend this literature by arguing that another pathway domestic IPRs protection affects own country's export is via the credit channel i.e. firms access to external finance. Among many others, this occurs because effective domestic IPRs protection creates a scenario wherein exporters can use their intellectual properties in the same way they use tangible assets as collateral in order to overcome the huge variable and upfront fixed costs they face. To underscore this pathway, I evaluate the export effect of domestic IPRs protection within the comparative model framework and find empirical evidence for my hypothesis, with the results indicating that countries with more effective IPRs protection export more from sectors that depend more on external finance and that have more intangible assets.

Suggested Citation

  • Ndubuisi, Gideon, 2019. "Domestic intellectual property rights protection and exports: Accessing the credit channel," MERIT Working Papers 017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2019017
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    References listed on IDEAS

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    More about this item

    Keywords

    Intellectual Property Rights; Exports; Access to Finance;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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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