Intellectual property rights and North-South tradeexports vs. foreign direct investment

  1. Quan Dong
  2. Juan Carlos Bárcena-Ruiz
  3. María Begoña Garzón
Journal:
Estudios de economía

ISSN: 0304-2758 0718-5286

Year of publication: 2022

Volume: 49

Issue: 2

Pages: 145-173

Type: Article

DOI: 10.4067/S0718-52862022000200145 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

More publications in: Estudios de economía

Sustainable development goals

Abstract

Este trabajo examina si una empresa del Norte prefiere exportar o realizar inversión extranjera directa (IED) para servir al Sur. Si la empresa realiza IED, su tecnología es imitada y entra en el mercado una empresa del Sur que puede vender en ambos mercados. La empresa del Norte puede invertir para evitar la piratería del producto en el Norte. Los dos mercados pueden tener tamaños diferentes. Se observa que cuando el coste de impedir la piratería del producto en el Norte es lo suficientemente grande: (i) Si el mercado del Sur es lo suficientemente grande, la empresa del Norte realiza IED, permitiendo la piratería en su mercado nacional, y el Sur obtiene el mayor bienestar; (ii) Si el mercado del Sur es lo suficientemente pequeño, la empresa del Norte exporta y el gobierno del Sur impone una fuerte protección de los derechos de propiedad intelectual, atrayendo a la empresa del Norte y mejorando el bienestar de ambos países.

Bibliographic References

  • Banerjee, D. S.. (2006). Lobbying and Commercial Software Piracy. European Journal of Political Economy. 22. 139
  • Belderbos, R.. (2008). Strategic R&D Location by Multinational Firms: Spillovers, Technology Sourcing and Competition. Journal of Economics and Management Strategy. 17. 759
  • Booth, A. L.. (1995). The Economics of the Trade Unions. Cambridge University Press.
  • Campi, M.. (2019). Intellectual Property Rights, Imitation, and Development. The Effect on CrossBorder Mergers and Acquisitions. The Journal of International Trade & Economic Development. 28. 230
  • Dong, Q.. (2014). Corruption and Decisions on Opening up Markets. Economic Modelling. 36. 23
  • Dong, Q.. (2021). Cross-Border Acquisitions from Developing Countries under Decreasing Returns to Scale. Portuguese Economic Journal,. 20. 297-317
  • Fink, C.,Maskus, K. E.. (2005). Intellectual Property and Development: Lessons from Recent Economic Research. World Bank and Oxford University Press.
  • Geng, D.. (2022). Tariff Barriers and the Protection of Intellectual Property in the Global Economy. European Economic Review. 144. 104074
  • Ghosh, A.. (2018). Trade Liberalization, Absorptive Capacity and the Protection of Intellectual Property Rights. Review of International Economics. 26. 997-1020
  • Ghosh, A.. (2018). Technology Spillovers, Intellectual Property Rights, and Export-Platform FDI. Journal of Economic Behavior & Organization. 151. 171
  • Glass, A. J.. (2002). Intellectual Property Rights and Foreign Direct Investment. Journal of International Economics. 56. 387-410
  • Grossman, G. M.. (2004). International Protection of Intellectual Property. American Economic Review. 94. 1635
  • Keupp, M. M.. (2010). Enforcing Intellectual Property Rights in Weak Appropriability Regimes: The Case of de facto Protection Strategies in China. Management International Review. 50. 109
  • Klein, M. A.. (2020). Complementarity in Public and Private Intellectual Property Enforcement; Implications for International Standards. Oxford Economic Papers. 72. 748
  • Leahy, D.. (2000). Unionization and Foreign Direct Investment: Challenging Conventional Wisdom?. The Economic Journal. 110. 80
  • Leahy, D.. (2010). Intellectual Property Rights and Entry into a Foreign Market: FDI versus Joint Ventures. Review of International Economics. 18. 633
  • Liao, P-C.. (2009). R&D Subsidy, Intellectual Property Rights Protection, and North-South Trade: How Good is the TRIPS Agreement?. Japan and the World Economy. 21. 191-201
  • Lin, J. X.. (2017). Pirate’s Treasure. Journal of International Economics. 109. 235
  • Lommerud, K. E.. (2003). Unionized Oligopoly, Trade Liberalization and Location Choice. The Economic Journal. 113. 782-800
  • Markusen, J. R.. (2001). Contracts, Intellectual Property Rights, and Multinational Investment in Developing Countries. Journal of International Economics. 53. 189-204
  • Mattoo, A.. (2004). Mode of Foreign Entry, Technology Transfer, and FDI Policy. Journal of Development Economics. 75. 95-111
  • Mucchielli, J. L.. Multinational Firms and International Relocation. Cheltenham, UK: Edward Elgar.
  • Naghavi, A.. (2007). Strategic Intellectual Property Rights Policy and NorthSouth Technology Transfer. Review of World Economics. 143. 55-78
  • Norbäck, P. J.. (2001). Multinational Firms, Technology and Location. Journal of International Economics. 54. 449
  • Organization for Economic Cooperation and Development, OECD. (2008). The Economic Impact of Counterfeiting and Piracy.
  • Qian, Y.. (2014). Brand Management and Strategies against Counterfeits. Journal of Economics & Management Strategy. 23. 317
  • Tanaka, H.. (2014). Intellectual Property Rights and Foreign Direct Investment: A Welfare Analysis. European Economic Review,. 67. 107
  • Yang, G.. (2001). Intellectual Property Rights, Licensing, and Innovation in an Endogenous Product-cycle Model. Journal of International Economics. 53. 169
  • Yang, L.. (2009). Intellectual Property Rights, Technology Transfer and Exports in Developing Countries. Journal of Development Economics. 90. 231
  • Zhang, J.. (2012). Fighting Strategies in a Market with Counterfeits. Annals of Operations Research. 192. 49-66