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Do Preferential Trade Agreements Stimulate Non-Resident Patenting? Evidence from BRICS

Author

Listed:
  • Qayoom Khachoo

    (CDE–IEG Visiting Postdoc fellow)

  • Ridwan Ah Sheikh

    (Department of Economics, Delhi School of Economics)

Abstract

Utilizing a novel cross-country dataset on patent filings, this study employs an augmented version of gravity model to explore the impact of preferential trade agreements (PTAs) on non-resident patent filings in emerging market economies of BRICS. PTAs, however, vary in terms of content and design, we therefore analyse their differential impact on patent filings while focussing on deep and shallow PTAs. The PPML estimates suggest that PTAs have a positive and statistically significant impact on non-resident patent filings in BRICS. In particular, country-pairs with PTAs increase their patent flows by 43% relative to control group (dyads with no PTAs). Further, compared to shallow PTA, deep PTAs appear to induce foreign patenting upsurge in BRICS. Shallow PTAs exhibit positive effects in the medium-term but negative effects in the long- term on patent flows, whereas deep PTAs unveil positive anticipatory effects. Key Words: Gravity model, Multilateral resistance, Preferential trade agreements, Patent filings, PPML JEL Codes: F00, O3

Suggested Citation

  • Qayoom Khachoo & Ridwan Ah Sheikh, 2023. "Do Preferential Trade Agreements Stimulate Non-Resident Patenting? Evidence from BRICS," Working papers 341, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:341
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    References listed on IDEAS

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    More about this item

    Keywords

    gravity model; multilateral resistance; preferential trade agreements; patent filings; ppml jel codes: f00; o3;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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