The Economic Effect of the Intellectual Property Obligations in Free Trade Agreements

50 Pages Posted: 19 Jul 2012

See all articles by Mike Palmedo

Mike Palmedo

American University - Program on Information Justice and Intellectual Property; American University

Date Written: May 1, 2012

Abstract

To date, there has been little empirical study to date of the effect that TRIPS-Plus intellectual property protection required by American free trade agreements has had on the economies of our trading partners. This paper examines data on foreign direct investment, licensing, employment, sales, and exports from three countries – Guatemala, Peru, and Nicaragua. Data is observed at the national and the firm level before and after each country strengthened its intellectual property laws (and demonstrated active enforcement of them) in order to comply with trade agreements. It suggests that implementation of the intellectual property provisions in FTAs by developing countries has had positive effects in some countries and in some industries. However, it does not support broad statements that intellectual property rights will necessarily lead to foreign direct investment, technology transfer, more and better employment, or growing exports.

Keywords: Intellectual Property, Foreign Direct Investment, Licensing, Employment, Innovation, Growth

JEL Classification: O34, O40

Suggested Citation

Palmedo, Mike, The Economic Effect of the Intellectual Property Obligations in Free Trade Agreements (May 1, 2012). Available at SSRN: https://ssrn.com/abstract=2112494 or http://dx.doi.org/10.2139/ssrn.2112494

Mike Palmedo (Contact Author)

American University - Program on Information Justice and Intellectual Property ( email )

4801 Massachusetts Avenue N.W.
Washington, DC 20016
United States

American University ( email )

4400 Massachusetts Ave, NW
Washington, DC 20016
United States

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