IDEAS home Printed from https://ideas.repec.org/p/kue/epaper/e-22-001.html
   My bibliography  Save this paper

Do Deep Regional Trade Agreements Facilitate International Research Collaboration?

Author

Listed:
  • Naoto JINJI
  • Xingyuan ZHANG
  • Shoji HARUNA

Abstract

We examine whether regional trade agreements (RTAs) facilitate international research collaboration. First, using a two-country model of a continuum of oligopolitic industries with process research and development (R&D) investment and spillovers, we analyze whether trade liberalization through a trade agreement with deep economic integration increases the number of firms that engage in research collaboration. We then empirically investigate the effects of deep RTAs by employing data on patents with multiple inventors from different countries at the United States Patent and Trademark Office (USPTO) for 114 countries/regions over the period 1990–2011. We interpret co-inventions by inventors residing in different countries as evidence of international research collaboration. We use dummy variables and indexes to measure the extent of economic integration by RTAs. We find that deeper integration is associated with more active international co-inventions. We check the robustness of our findings by employing various specifications and addressing endogeneity issues.

Suggested Citation

  • Naoto JINJI & Xingyuan ZHANG & Shoji HARUNA, 2022. "Do Deep Regional Trade Agreements Facilitate International Research Collaboration?," Discussion papers e-22-001, Graduate School of Economics , Kyoto University.
  • Handle: RePEc:kue:epaper:e-22-001
    as

    Download full text from publisher

    File URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-001.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    2. Haaland, Jan I. & Kind, Hans Jarle, 2008. "R&D policies, trade and process innovation," Journal of International Economics, Elsevier, vol. 74(1), pages 170-187, January.
    3. Henrik Horn & Petros C. Mavroidis & André Sapir, 2010. "Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1565-1588, November.
    4. Riccardo Cappelli & Fabio Montobbio, 2016. "European Integration and Knowledge Flows across European Regions," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 709-727, April.
    5. Montobbio, Fabio & Sterzi, Valerio, 2013. "The Globalization of Technology in Emerging Markets: A Gravity Model on the Determinants of International Patent Collaborations," World Development, Elsevier, vol. 44(C), pages 281-299.
    6. Jarno Hoekman & Koen Frenken & Frank Oort, 2009. "The geography of collaborative knowledge production in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 721-738, September.
    7. Baldwin, Richard & Jaimovich, Dany, 2012. "Are Free Trade Agreements contagious?," Journal of International Economics, Elsevier, vol. 88(1), pages 1-16.
    8. Arghya Ghosh & Jonathan Lim, 2013. "Cooperative and non-cooperative R&D and trade costs," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(6), pages 942-958, September.
    9. Hoekman, Jarno & Frenken, Koen & Tijssen, Robert J.W., 2010. "Research collaboration at a distance: Changing spatial patterns of scientific collaboration within Europe," Research Policy, Elsevier, vol. 39(5), pages 662-673, June.
    10. Baldwin,Richard & Haapararanta,Pertti & Kiander,Jaakko (ed.), 1995. "Expanding Membership of the European Union," Cambridge Books, Cambridge University Press, number 9780521481342, September.
    11. Naotoshi Tsukada & Sadao Nagaoka, 2015. "Determinants of International Research Collaboration: Evidence from International Co-Inventions in Asia and Major OECD Countries," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 96-119, January.
    12. Leahy, Dermot & Neary, J Peter, 1999. "R&D Spillovers and the Case for Industrial Policy in an Open Economy," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 40-59, January.
    13. Qiu, Larry D. & Tao, Zhigang, 1998. "Policy on international R&D cooperation: Subsidy or tax?," European Economic Review, Elsevier, vol. 42(9), pages 1727-1750, November.
    14. Santos Silva, J.M.C. & Tenreyro, Silvana, 2011. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," Economics Letters, Elsevier, vol. 112(2), pages 220-222, August.
    15. Fabio Montobbio & Valerio Sterzi, 2013. "The globalization of technology in emerging markets: a gravity model on the determinants of international technological collaborations," Post-Print hal-00779894, HAL.
    16. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    17. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2019. "Do deeper regional trade agreements enhance international technology spillovers?," The World Economy, Wiley Blackwell, vol. 42(8), pages 2326-2363, August.
    18. Picci, Lucio, 2010. "The internationalization of inventive activity: A gravity model using patent data," Research Policy, Elsevier, vol. 39(8), pages 1070-1081, October.
    19. Andreas Dür & Leonardo Baccini & Manfred Elsig, 2014. "The design of international trade agreements: Introducing a new dataset," The Review of International Organizations, Springer, vol. 9(3), pages 353-375, September.
    20. Gianluca Orefice & Nadia Rocha, 2014. "Deep Integration and Production Networks: An Empirical Analysis," The World Economy, Wiley Blackwell, vol. 37(1), pages 106-136, January.
    21. Hofmann, Claudia & Osnago, Alberto & Ruta, Michele, 2019. "The Content of Preferential Trade Agreements," World Trade Review, Cambridge University Press, vol. 18(3), pages 365-398, July.
    22. Dür, Andreas & Baccini, Leonardo & Elsig, Manfred, 2014. "The design of international trade agreements: introducing a new dataset," LSE Research Online Documents on Economics 59179, London School of Economics and Political Science, LSE Library.
    23. Baldwin, Richard, 2011. "21st century regionalism: Filling the gap between 21st century trade and 20th century trade rules," WTO Staff Working Papers ERSD-2011-08, World Trade Organization (WTO), Economic Research and Statistics Division.
    24. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    25. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    26. Nagaoka, Sadao & Motohashi, Kazuyuki & Goto, Akira, 2010. "Patent Statistics as an Innovation Indicator," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1083-1127, Elsevier.
    27. Rajeev K. Goel & Shoji Haruna, 2011. "Cost-Reducing R&D with Spillovers and Trade," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(2), pages 314-326, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2022. "Deep Integration, Global Firms, and Technology Spillovers," Advances in Japanese Business and Economics, Springer, number 978-981-16-5210-3, June.
    2. Naoto JINJI & Yukiko SAWADA & Xingyuan ZHANG & Shoji HARUNA, 2021. "Gravity for Cross-border Licensing and the Impact of Deep Trade Agreements: Theory and Evidence," Discussion papers e-20-008, Graduate School of Economics , Kyoto University.
    3. Ahcar, Jaime & Siroën, Jean-Marc, 2017. "Deep Integration: Considering the Heterogeneity of Free Trade Agreements," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(3), pages 615-659.
    4. Riccardo Cappelli & Fabio Montobbio, 2016. "European Integration and Knowledge Flows across European Regions," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 709-727, April.
    5. Nuno Limão, 2016. "Preferential Trade Agreements," NBER Working Papers 22138, National Bureau of Economic Research, Inc.
    6. Naoto Jinji & Yukiko Sawada & Xingyuan Zhang & Shoji Haruna, 2024. "Gravity for cross‐border licensing and the impact of deep trade agreements: Theory and evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(3), pages 836-869, August.
    7. Ernest Miguélez, 2018. "Inventor Diasporas and the Internationalization of Technology," The World Bank Economic Review, World Bank, vol. 32(1), pages 41-63.
    8. Sébastien Miroudot & Davide Rigo, 2022. "Multinational production and investment provisions in preferential trade agreements [Intra-industry foreign direct investment]," Journal of Economic Geography, Oxford University Press, vol. 22(6), pages 1275-1308.
    9. Edith Laget & Alberto Osnago & Nadia Rocha & Michele Ruta, 2020. "Deep Trade Agreements and Global Value Chains," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 379-410, September.
    10. Sébastien Jean & Jean-Christophe Bureau, 2016. "Do regional trade agreements really boost trade? Evidence from agricultural products," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(3), pages 477-499, August.
    11. Peter H. Egger & Filip Tarlea, 2021. "Comparing Apples to Apples: Estimating Consistent Partial Effects of Preferential Economic Integration Agreements," Economica, London School of Economics and Political Science, vol. 88(350), pages 456-473, April.
    12. Ka Zeng & Yue Lu & Ya‐wei Li, 2021. "Trade agreements and Global Value Chain (GVC) participation: Evidence from Chinese industries," Economics and Politics, Wiley Blackwell, vol. 33(3), pages 533-582, November.
    13. Kox, Henk L.M. & Rojas Romasgosa, Hugo, 2019. "Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements," MPRA Paper 96318, University Library of Munich, Germany.
    14. Jacopo Timini & Nicola Cortinovis & Fernando López Vicente, 2022. "The heterogeneous effects of trade agreements with labour provisions," The World Economy, Wiley Blackwell, vol. 45(9), pages 2820-2853, September.
    15. Milena Kern & Jörg Paetzold & Hannes Winner, 2021. "Cutting red tape for trade in services," The World Economy, Wiley Blackwell, vol. 44(10), pages 2858-2886, October.
    16. Gianluca Orefice & Nadia Rocha, 2014. "Deep Integration and Production Networks: An Empirical Analysis," The World Economy, Wiley Blackwell, vol. 37(1), pages 106-136, January.
    17. Dosso, Mafini & Cassi, Lorenzo & Mescheba, Wilfriedo, 2023. "Towards regional scientific integration in Africa? Evidence from co-publications," Research Policy, Elsevier, vol. 52(1).
    18. Inmaculada Martínez-Zarzoso & Santiago Chelala, 2021. "Trade agreements and international technology transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(3), pages 631-665, August.
    19. Henk L. M. Kox & Hugo Rojas‐Romagosa, 2020. "How trade and investment agreements affect bilateral foreign direct investment: Results from a structural gravity model," The World Economy, Wiley Blackwell, vol. 43(12), December.
    20. Morescalchi, Andrea & Pammolli, Fabio & Penner, Orion & Petersen, Alexander M. & Riccaboni, Massimo, 2015. "The evolution of networks of innovators within and across borders: Evidence from patent data," Research Policy, Elsevier, vol. 44(3), pages 651-668.

    More about this item

    Keywords

    Research collaboration; international co-invention; regional trade agreement; deep integration.;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kue:epaper:e-22-001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Graduate School of Economics Project Center (email available below). General contact details of provider: https://edirc.repec.org/data/fekyojp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.