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ICT Innovation, IPR Enforcement, and RTAs: Evidence from a PPML Structural Gravity Model

Dahin Kim and Moonsung Kang

Global Economic Review, 2025, vol. 54, issue 3, 249-269

Abstract: This study examines how importer-side ICT innovation, IPR enforcement, and RTAs interact to shape bilateral trade flows. Using a PPML structural gravity model, we find that stronger domestic innovation tends to reduce ICT imports, particularly in countries with strict IPR regimes. However, participation in RTAs mitigates this effect by fostering institutional trust and enabling knowledge exchange. East Asian countries like South Korea and China maintain high innovation levels despite weak IPR enforcement, suggesting potential benefits from strengthening IPR to protect domestic industries. These results highlight the need for tailored strategies of innovation policy and trade-related institutions in global ICT markets.

Date: 2025
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DOI: 10.1080/1226508X.2025.2550716

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