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Intellectual property, tariffs, and international trade dynamics

Federico Mandelman () and Andrea Waddle ()

Journal of Monetary Economics, 2020, vol. 109, issue C, 86-103

Abstract: The emergence of global value chains leads not only to a magnification of trade in intermediate inputs, but also to extensive technology diffusion. Moreover, the lack of enforcement of intellectual property rights has recently become a subject of debate in the context of China-US trade negotiations. In this paper, the interaction between tariffs and the enforcement of intellectual property rights is studied within a quantitative general equilibrium framework. Results indicate that tariffs could be an effective deterrent for weak protections for intellectual property and weakening enforcement of intellectual property rights may be a strong deterrent for raising tariffs.

Keywords: Tariffs; Intellectual property rights; Technology capital transfers; International trade (search for similar items in EconPapers)
JEL-codes: F13 F21 F41 F42 F51 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.jmoneco.2019.10.013

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