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Article
Intellectual Property Protection and the Industrial Composition of Multinational Activity
Economic Inquiry (2016)
  • Olena Ivus
  • Walter Park
  • Kamal Saggi, Vanderbilt University
Abstract
In a North-South model with endogenous FDI, we examine the impact of Southern IPR protection on the mode and industry composition of international technology transfer. A novel feature of the model is that, due to technological reasons, industries differ with respect to their susceptibility to imitation. In equilibrium, licensing occurs in industries where the risk of imitation is low and FDI where it is of intermediate magnitude. Stronger IPRs in the South (i) alter the industrial composition of multinational activity towards licensing at the expense of FDI, (ii) reduce local imitation, (iii) increase licensing and, to a lesser extent, FDI.
Keywords
  • Trade; Intellectual property rights
Publication Date
2016
Citation Information
Ivus, Olena, Walter Park and Kamal Saggi. 2015. “Intellectual Property Protection and the Industrial Composition of Multinational Activity.” Economic Inquiry, 54(2): 1068-1085.