Are U.S. Exports Influenced by Stronger IPR Protection Measures in Recipient Markets?

Posted: 31 Jan 2014

See all articles by Alexander Hammer

Alexander Hammer

United States International Trade Commission (USITC)

E. Tani Fukui

U.S. International Trade Commission

Lin Jones

U.S. International Trade Commission

Date Written: March 1, 2013

Abstract

U.S. exporters have choices when it comes to determining in which markets to sell their firms’ products and services. These choices depend on several factors, including market size, income levels, price sensitivity, competition, consumer preferences, and other demand conditions in the recipient markets. Cost considerations also play an important role in determining to which markets firms export, especially those associated with transportation, tariff and non-tariff barriers to trade, legal and translations services, and logistics support for vertically integrated supply and distribution channels. However, the inclusion of intellectual property rights (IPR) considerations has not been integral to the well-established literature on firms’ export determinants. Using a comparative indicator of IPR protection measures in various countries, this article isolates the effects of IPR protection as a determinant to U.S. export activity. The results show that growth in U.S. exports has been correlated with improvements in IPR protection in foreign markets over the considered period and that the magnitude of this correlation has varied markedly by sector and country. High-technology sectors, such as semiconductors as well as synthetic rubbers and fibers, exhibited the greatest sensitivity to improvements in IPR protection mechanisms in the considered period while improvements in IPR protection in markets like Mexico, China, and Japan were correlated with disproportionately high positive effects on U.S. export performance.

Keywords: IPR;

JEL Classification: C10, F1, F10, F13

Suggested Citation

Hammer, Alexander and Fukui, E. Tani and Jones, Lin, Are U.S. Exports Influenced by Stronger IPR Protection Measures in Recipient Markets? (March 1, 2013). Business Horizons, Vol. 56, No. 2, 2013, Available at SSRN: https://ssrn.com/abstract=2386723

Alexander Hammer (Contact Author)

United States International Trade Commission (USITC) ( email )

500 E St SW
Washington, DC 20436
United States

E. Tani Fukui

U.S. International Trade Commission ( email )

United States
202-205-3220 (Phone)

Lin Jones

U.S. International Trade Commission ( email )

500 E Street SW
Washington, DC 20436
United States

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