Does Stronger Intellectual Property Rights Protection Induce More Bilateral Trade? Evidence from China's Imports

Most of the previous studies on the trade effects of intellectual property rights (IPR) protection have been from the perspective of major industrialized nations. However, much of the current debate on the effects of IPR protection involves large developing countries. This study contributes to the literature by analyzing the impact of stronger IPR laws in China on its bilateral trade flows. We estimate the effects of IPR protection on China's imports at the aggregate and detailed product categories for both developed and developing countries. The empirical results suggest that increased IPR protection stimulates China's imports, particularly for knowledge-intensive products. (C) 2010 Elsevier Ltd. All rights reserved.