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How stronger protection of intellectual property rights affects international trade flows

Author

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  • Fink, Carsten
  • Braga, Carlos A. Primo

Abstract

Intellectual property rights affect international trade flows when protected goods move across national boundaries. And intellectual property rights have grown in importance as the share of knowledge-intensive or high-technology products in international trade has doubled (from 12 percent in 1980 to 24 percent in 1994). The authors report new evidence about how protecting intellectual property rights affects international trade flows of nonfuel trade products. Employing a gravity model of bilateral trade, they estimate the effects of increased protection on a cross-section of 89 x 88 countries. To address estimation problems associated with zero trade flows between countries, they adopt a bivariate distributed probit regression mode. Their results confirm previous findings: stronger protection of intellectual property rights increase bilateral trade flows of manufactured nonfuel imports. But the results do not hold for trade flows in high technology, where the effect of protection intellectual property rights was found to be insignificant.

Suggested Citation

  • Fink, Carsten & Braga, Carlos A. Primo, 1999. "How stronger protection of intellectual property rights affects international trade flows," Policy Research Working Paper Series 2051, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2051
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Philippa Dee, 2005. "The Australia–US Free Trade Agreement - An Assessment," Trade Working Papers 22309, East Asian Bureau of Economic Research.
    2. Gloria O. Pasadilla, 2007. "Preferential trading agreements and agricultural liberalization in East and South-East Asia," STUDIES IN TRADE AND INVESTMENT,in: Studies in Trade and Investment - AGRICULTURAL TRADE - PLANTING THE SEEDS OF REGIONAL LIBERALIZATION IN ASIA, volume 60, pages 75-130 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    3. Eaton, Derek J.F., 2009. "Trade and Intellectual Property Rights in the Agricultural Seed Sector," 2009 Conference, August 16-22, 2009, Beijing, China 51782, International Association of Agricultural Economists.
    4. Wisniewski, Suzanne L.W., 2003. "Effects Of Foreign Intellectual Property Rights On U.S. Bilateral Exports Of Biotechnology Related Agricultural Inputs," 2003 Annual meeting, July 27-30, Montreal, Canada 22222, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Pervez Zamurrad Janjua & Ghulam Samad, 2007. "Intellectual Property Rights and Economic Growth: The Case of Middle Income Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 711-722.
    6. Anja Breitwieser & Neil Foster-McGregor, 2012. "Intellectual Property Rights, Innovation and Technology Transfer: A Survey," wiiw Working Papers 88, The Vienna Institute for International Economic Studies, wiiw.
    7. Awokuse, Titus O. & Yin, Hong, 2010. "Does Stronger Intellectual Property Rights Protection Induce More Bilateral Trade? Evidence from China's Imports," World Development, Elsevier, vol. 38(8), pages 1094-1104, August.
    8. Philippa Dee, 2005. "The Australia-US Free Trade Agreement: An Assessment," Asia Pacific Economic Papers 345, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    9. Jose Groizard, 2009. "Technology Trade," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1526-1544.
    10. Wonkyu Shin & Keun Lee & Walter G. Park, 2016. "When an Importer's Protection of IPR Interacts with an Exporter's Level of Technology: Comparing the Impacts on the Exports of the North and South," The World Economy, Wiley Blackwell, vol. 39(6), pages 772-802, June.
    11. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers 14606, International Agricultural Trade Research Consortium.
    12. Yungho Weng & Chih-Hai Yang & Yi-Ju Huang, 2009. "Intellectual property rights and U.S. information goods exports: the role of imitation threat," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(2), pages 109-134, May.
    13. Carsten Vogel, 2006. "The Impact and the Implications of TRIPs in a Knowledge-based Global Economy: A Developing Country's Perspective," STUDIES IN TRADE AND INVESTMENT,in: Asia-Pacific Trade and Investment Review, volume 2, chapter 3, pages 47-70 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    14. Mercedes Delgado & Margaret Kyle & Anita M. McGahan, 2013. "Intellectual Property Protection and the Geography of Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 733-762, September.
    15. McAusland, Carol & Kuhn, Peter, 2011. "Bidding for brains: Intellectual property rights and the international migration of knowledge workers," Journal of Development Economics, Elsevier, vol. 95(1), pages 77-87, May.
    16. Maria Pluvia ZUNIGA & Emmanuel COMBE, 2002. "Introducing Patent Protection In The Pharmaceutical Sector:," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 16, pages 191-221.
    17. Ivus, Olena, 2010. "Do stronger patent rights raise high-tech exports to the developing world?," Journal of International Economics, Elsevier, vol. 81(1), pages 38-47, May.
    18. Rod Falvey & Neil Foster & David Greenaway, 2009. "Trade, imitative ability and intellectual property rights," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 373-404, October.
    19. Palangkaraya, Alfons & Jensen, Paul H. & Webster, Elizabeth, 2017. "The effect of patents on trade," Journal of International Economics, Elsevier, vol. 105(C), pages 1-9.

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