Intellectual Property Protection and the Geography of Trade

30 Pages Posted: 23 Oct 2013

See all articles by Mercedes Delgado

Mercedes Delgado

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Margaret Kyle

University of Toulouse 1 - Toulouse School of Economics (TSE)

Anita M. McGahan

University of Toronto - Rotman School of Management

Date Written: September 2013

Abstract

This paper investigates how the implementation of intellectual property rights in developing countries under the 1995 TRIPS agreement affected trade in knowledge‐intensive goods. We compare trade in knowledge‐intensive goods with trade in other types of goods for 158 members and observers of the World Trade Organization from 1993–2009. Trade in knowledge‐intensive goods increased relative to a control group after TRIPS implementation. The increase in imports by developing countries was driven by exchange with high‐income countries and was concentrated in the information and communications technology sector. Our findings suggest that the effect of TRIPS on promoting knowledge diffusion from high‐income to developing countries varies by sector.

Suggested Citation

Delgado, Mercedes and Kyle, Margaret and McGahan, Anita M., Intellectual Property Protection and the Geography of Trade (September 2013). The Journal of Industrial Economics, Vol. 61, Issue 3, pp. 733-762, 2013, Available at SSRN: https://ssrn.com/abstract=2344004 or http://dx.doi.org/10.1111/joie.12027

Mercedes Delgado (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

77 Massachusetts Ave. E62-663
Cambridge, MA 02142
United States

HOME PAGE: http://mitsloan.mit.edu/faculty-and-research/faculty-directory/detail/?id=54139

Margaret Kyle

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Anita M. McGahan

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
416-978-6188 (Phone)

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