The effect of patents on trade

Alfons Palangkaraya, Paul Jensen and Elizabeth Webster ()

Journal of International Economics, 2017, vol. 105, issue C, 1-9

Abstract: In contrast with quotas and tariffs, it is theoretically ambiguous whether fewer (or ‘weaker’) rules over intellectual property rights will increase or decrease trade in patentable goods. The prevailing view is that anticipation of imitation reduces exporters' incentive to export goods to jurisdictions with ‘weak’ patent regimes. This empirical paper uses new measures of how the destination-country patent system can affect trade. In contrast with existing studies which assume would-be exporters can always get a patent in the target foreign market, we construct measures of the bias against foreign patent applicants and patents which may block imported goods. We find evidence that the presence of destination-country blocking patents has the larger (negative) impact on international trade. Being refused a patent also has a negative impact on trade but the magnitude is smaller.

Keywords: International trade; Patents; Innovation; Imitation; Intellectual property rights (search for similar items in EconPapers)
JEL-codes: F13 F14 K33 O31 O34 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022199616301507
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:105:y:2017:i:c:p:1-9

DOI: 10.1016/j.jinteco.2016.12.002

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().