Do Patent Rights Regimes Matter?

Catherine Co

Review of International Economics, 2004, vol. 12, issue 3, 359-373

Abstract: The paper asks whether exports are affected by importers’ patent rights regimes using a gravity trade equation. US export data to 71 countries from 1970 to 1992 are used. A two‐way random‐effects panel indicates that patent rights regimes per se do not matter; they matter with importing countries’ imitative abilities. For a country with an “average” imitative ability, US R&D‐intensive exports increase by 4–9% for a unit increase in the patent rights index; a unit increase in the patent rights index leads to a drop in US non‐R&D‐intensive exports by about 8–11%.

Date: 2004
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