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Intellectual Property-Related Preferential Trade Agreements and the Composition of Trade

43 Pages Posted: 17 Nov 2016  

Keith E. Maskus

University of Colorado at Boulder - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

William Ridley

University of Colorado at Boulder - Department of Economics

Date Written: September 2016

Abstract

This paper investigates the role of preferential trade agreements (PTAs) with complex chapters covering intellectual property rights (IPRs) in determining the magnitude and composition of countries’ trade. Changes in the global IPRs environment have increasingly been negotiated within the terms of PTAs. Despite the proliferation of PTAs with strong IPRs standards, little attention has been paid to their effects on the trade of member countries. Using a carefully designed empirical framework to measure the effects of agreement membership on aggregate imports and exports, we find that trade agreements with IPRs chapters have significant impacts on members’ aggregate trade. The results are further broken down by income groups and the composition of sectoral trade. The findings accord with predicted relationships from previous research on IPRs and trade and suggest that regulatory aspects of trade agreements have important cross-border impacts. This possibility has been little studied to date.

Keywords: China, intellectual property, IPRs, innovation policy, trade agreements

Suggested Citation

Maskus, Keith E. and Ridley, William, Intellectual Property-Related Preferential Trade Agreements and the Composition of Trade (September 2016). Robert Schuman Centre for Advanced Studies Research Paper No. 2016/35. Available at SSRN: https://ssrn.com/abstract=2870572 or http://dx.doi.org/10.2139/ssrn.2870572

Keith E. Maskus (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-492-7588 (Phone)
303-492-8960 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

William Ridley

University of Colorado at Boulder - Department of Economics

Campus Box 256
Boulder, CO 80309
United States

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