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Do Patent Rights Regimes Matter?
Author(s) -
Co Catherine Y.
Publication year - 2004
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2004.00455.x
Subject(s) - index (typography) , economics , panel data , unit (ring theory) , international trade , gravity equation , international economics , gravity model of trade , econometrics , bilateral trade , law , political science , mathematics , china , mathematics education , world wide web , computer science
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%.