Bilateral intra-industry trade flows and intellectual property rights protection: First empirical evidence

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Abstract

This study provides the first empirical evidence on the effects of intellectual property rights (IPRs) protection on bilateral intra-industry trade (IIT) flows. The empirical investigation is based on pooled South African data and takes advantage of the theoretical distinction between horizontal and vertical IIT. A gravity equation of international trade is estimated in the context of fixed and random effects models. The principal findings suggest that IPRs and imitation abilities separately are not important factors in determining IIT flows. However, the interaction between them is important.

Original languageEnglish
Pages (from-to)823-828
Number of pages6
JournalApplied Economics Letters
Volume12
Issue number13
DOIs
Publication statusPublished - Oct 20 2005

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ASJC Scopus subject areas

  • Economics and Econometrics

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