 Do stronger intellectual property rights protections raise productivity within the context of trade liberalization? Evidence from ChinaXiaotian Hu and Xiaopeng Yin Economic Modelling, 2022, vol. 110, issue C Abstract: Total factor productivity (TFP) is essential for the firm, and research shows it is affected by many factors, such as institutional quality. However, less attention has focused on intellectual property rights protection (IPP). Using an integrated Chinese manufacturing enterprises database from 2000 to 2007 and an instrumental variable estimator jointly with the difference-in-differences approach to account for endogeneity of the IPP variable, we explore the effects of stricter IPP on manufacturer TFP at the province-industry level. First, we find that, on average, stronger IPP raises the TFP of Chinese manufacturers within the context of trade liberalization. Second, we examine the mechanisms explaining our finding—tighter IPP can improve firm TFP by encouraging more innovational activities and the importing of capital goods with higher quality. Our main results are robust to a set of alternative specifications even when the 2008 financial crisis is considered. Keywords: Difference-in-differences; Intellectual property rights protection; Manufacturing firms/industry; Productivity; Trade liberalization (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:110:y:2022:i:c:s0264999322000372 DOI: 10.1016/j.econmod.2022.105791 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.