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Do Intellectual Property Rights Matter To Taiwan'S Exports? A Dynamic Panel Approach

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  • Chih‐Hai Yang
  • Yi‐Ju Huang

Abstract

This article analyses whether and how Taiwan's exports are sensitive to national differences in intellectual property right (IPR) protection, as well as the degree of imitation threat. Applying a longitudinal IPR index developed by the World Economic Forum (WEF) and using the generalized method of moments dynamic panel data modelling technique to control for endogeneity and panel unit root problems, the empirical results show that the strength of importing countries' IPR protection has a positive impact on Taiwan's exports, supporting the standpoint of market expansion that stronger IPR protection will induce more trade. Under various classification systems to differentiate the degree of threat of imitation across countries, both positive and negative export effects of IPR are found in Taiwan's case. However, the pattern of threat of imitation–trade nexus seems to contradict theory predictions. Moreover, high‐tech exports are found be more IPR sensitive than non‐high‐tech exports.

Suggested Citation

  • Chih‐Hai Yang & Yi‐Ju Huang, 2009. "Do Intellectual Property Rights Matter To Taiwan'S Exports? A Dynamic Panel Approach," Pacific Economic Review, Wiley Blackwell, vol. 14(4), pages 555-578, October.
    • Handle: RePEc:bla:pacecr:v:14:y:2009:i:4:p:555-578
    DOI: 10.1111/j.1468-0106.2009.00460.x
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    Cited by:

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    2. Wei Yang & Xiang Yu & Dian Wang & Jinrui Yang & Ben Zhang, 2021. "Spatio-temporal evolution of technology flows in China: patent licensing networks 2000–2017," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1674-1703, October.
    3. Wen-Hsien Liu & Hui-Fang Liang, 2016. "Will Domestic Imitative Threats Influence High-Tech Imports? Evidence from Taiwan," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 12(1), pages 37-60, February.
    4. Ghosh, Arghya & Morita, Hodaka & Nguyen, Xuan, 2018. "Technology spillovers, intellectual property rights, and export-platform FDI," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 171-190.
    5. Palangkaraya, Alfons & Jensen, Paul H. & Webster, Elizabeth, 2017. "The effect of patents on trade," Journal of International Economics, Elsevier, vol. 105(C), pages 1-9.
    6. Doanh, Nguyen Khanh & Gam, Nguyen Thi & Heo, Yoon, 2022. "The impact of intellectual property rights protection on trade: The role of a “third country” in market power and market expansion effects," Economic Systems, Elsevier, vol. 46(1).
    7. Po-Lu Chen, 2013. "Modes of Foreign Direct Investment and Intellectual Property Rights Protection: Wholly-owned or Joint Venture? Firm-level Evidence from Taiwanese Multinational Manufacturing Enterprises," Review of International Economics, Wiley Blackwell, vol. 21(3), pages 549-561, August.
    8. Jie Li & Xiaohui Xu & Jing Lu, 2015. "Negotiation over Intellectual Property Rights Protection in a Mixed Market," Review of Development Economics, Wiley Blackwell, vol. 19(4), pages 759-775, November.

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