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Coordination Of Trade And Intellectual Property Rights Policies

Author

Listed:
  • TE-CHENG LU

    (School of Accounting and Finance, Tan Kah Kee College, Xiamen University, P. R. China)

  • JIN-LI HU

    (Institute of Business and Management, National Chiao Tung University, ROC)

  • YAN-SHU LIN

    (Department of Economics, National Dong Hwa University, No. 1, Sec. 2, Da Hsueh Rd., Shoufeng, Hualien 97401, ROC)

Abstract

We employ a bilateral R&D spillover model to analyze how a domestic government coordinates its intellectual property rights (IPR) and trade policies and hence affects a foreign firm’s choice between export (EX) and foreign direct investment (FDI). We find that both firms’ profits increase with IPR protection if the IPR protection level in the domestic country is loose. The domestic country can coordinate trade and IPR policies and reach a high welfare level by affecting foreign firm’s entry decisions. The profitability and desirability may decrease with the strength of IPR protection and correspond to a welfare-reducing R&D.

Suggested Citation

  • Te-Cheng Lu & Jin-Li Hu & Yan-Shu Lin, 2023. "Coordination Of Trade And Intellectual Property Rights Policies," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(05), pages 1771-1785, September.
    • Handle: RePEc:wsi:serxxx:v:68:y:2023:i:05:n:s0217590819500747
    DOI: 10.1142/S0217590819500747
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    More about this item

    Keywords

    Intellectual property rights; tariff; R&D spillover; entry mode;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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