The Influence of Intellectual Property Rights (IPR) on ASEAN+5’s International Trade (IT)
DOI:
https://doi.org/10.21009/ISC-BEAM.011.48Keywords:
international trade (IT), IPR, ASEAN 5, government effectiveness, panel dataAbstract
In accordance with the ASEAN IPR Action Plan 2016-2025, this study explores the connections and causality of Intellectual Property Rights (IPR) on international trade (IT) of ASEAN+5 countries represented by Malaysia, Thailand, the Philippines, Singapore, and Indonesia. According to this, international trade is measured in terms of trade (as a percentage of GDP). IPR is measured by patent applications filed by residents, patent applications filed by non-residents, industrial design applications filed by residents, and industrial design applications filed by non-residents. Along with IPR, the effect of government effectiveness (GE) on IT is also investigated. Foreign direct investment (FDI) and inflation are also utilized as control variables. This study adopts new growth theory as to further explain the variables involved. All ASEAN+5 data for the individual variables were derived from the World Bank Development database, and the panel dataset was investigated using the PFGLS estimator and Dumitrescu-Hurlin test for over 21-years period (2000-2020). The findings of this study revealed a strong effect between IPR and IT as well as a unidirectional relationship between IPR (except industrial design application, filed by residents) and IT for the ASEAN+5 region. The limitation of this study is that it only focused on five ASEAN countries, and the selection of IPR indicators was limited. Nevertheless, this study provides some important insights for policymakers and local merchants to focus and invest more on IPR in order to promote ASEAN's international trade in accordance with global norms.
References
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Barra, C., Papaccio, A., & Ruggiero, N. (2023). Government effectiveness and inequality in Italian regions. Economic Change and Restructuring, 56(2), 781–801. https://doi.org/10.1007/s10644-022-09450-z
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Campi, M., & Dueñas, M. (2019). Intellectual property rights , trade agreements , and international trade. Research Policy, 48(3), 531–545. https://doi.org/10.1016/j.respol.2018.09.011
Cho, K., Kim, C., & Shin, J. (2015). Differential effects of intellectual property rights on innovation and economic performance: A cross-industry investigation. Science and Public Policy, 42(6), 827–840. https://doi.org/10.1093/scipol/scv009
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Davoudi, S. M. M., Fartash, K., Zakirova, V. G., Belyalova, A. M., Kurbanov, R. A., Boiarchuk, A. V., & 7, Z. M. S. (2018). Testing the Mediating Role of Open Innovation on the Relationship between Intellectual Property Rights and Organizational Performance : A Case of Science and Technology Park. EURASIA Journal of Mathematics, Science and Technology Education, 14(4), 1359–1369. https://doi.org/10.29333/ejmste/83651
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Doanh, N. K., & Heo, Y. (2007). Impacts of Intellectual Property Rights on Trade Flows in ASEAN countries. JOURNAL OF INTERNATIONAL AND AREA STUDIES, 14(1), 1–15.
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El-Osta, B.,MacPhee, C. R., & Rosenbaum, D. I. (1996). International Trade, Foreign Direct Investment and Domestic Market Performance.
Felis-rota, M. (2010). THE GOVERNANCE THRESHOLD IN INTERNATIONAL TRADE FLOWS.
Fink, C., & Primo, C. A. (1999). How Stronger Protection of Intellectual Property Rights Affects International Trade Flows. 1–24.
Foster, N. (2014). The Journal of International Trade & Economic Development : An International and Comparative Review Intellectual property rights and the margins of internationaltrade. The Journal of International Trade & Economic Development, 23(1), 1–30. https://doi.org/10.1080/09638199.2012.664556
Gilchrist, S., & Zakraj, E. (2019). Trade Exposure and the Evolution of Inflation Dynamics. Finance and Economics Discussion Series, January, 1–46.
Hossain, A. (2018). Basic Concept of Intellectual property Rights ( IPRs ). Bangladesh Journal of Bioethics, 9(1), 24–28.
Kawai, M., Urata, S., Dialogue, P., & Conference, I. (2002). TRADE AND FOREIGN DIRECT INVESTMENT.Khan, S. A. (2020). The Effect of Governance on International Trade and the Mediating Role of Business Regulations. Society & Sustainability, 2(3), 39–52. https://doi.org/10.38157/society_sustainability.v2i3.198
Le, H. T. T., Luong, T. T. D., Nguyen, T. T.T., & Van Nguyen, D. (2022). Determinants of Intellectual Property Rights Protection in Asian Developing Countries. Journal of the Knowledge Economy, October 2022. https://doi.org/10.1007/s13132-022-01051-5
Liu, Y., Chia, C., & Phillips, F. (2020). Precursors of intellectual property rights enforcement in East and Southeast Asia. Industrial Marketing Management, 90, 133–142. https://doi.org/10.1016/j.indmarman.2020.06.013
Merges, R. P. (1996). Contracting into Liability Rules : Intellectual Property Rightsand Collective Rights Organizations. CALIFORNIA LAW REVIEW, 84, 1293–1393.
Mubanani, E. M., & Fadhil, P. N. (2023). Application of the New Growth Theory to Financial Risk Management. Application of the New Growth Theory to Financial Risk Management, 2(1),32–39. https://doi.org/10.59413/eafj/v2.i1.5
Ngouhouo, I., Nchofoung, T., & Njamen Kengdo, A. A. (2021). Determinants of Trade Openness in Sub-Saharan Africa: Do Institutions Matter? International Economic Journal, 35(1), 96–119. https://doi.org/10.1080/10168737.2020.1858323
Nzama, L., Sithole, T., & Kahyaoglu, S. B. (2023). The Impact of Government Effectiveness on Trade and Financial Openness: The Generalized Quantile Panel Regression Approach. Journal of Risk and Financial Management, 16(1). https://doi.org/10.3390/jrfm16010014
Plasmans, J., & Tan, J. (2005). CES IFO E CONOMIC S TUDIES C ONFERENCE ON U NDERSTANDING. 49(June).
Raizada, G., & Dhillon, S. S. (2017). Impact of Intellectual Property Rights on International Trade : Evidence from India. 22(July), 200–210.
Reichman, J. H. (1993). Beyond the Historical Lines of Demarcation : Competititon Law , Intellectual Property Rights , and International Trade After the GATT ’ s Uruguay. 20(1).
Ricado, D. (1821). On the Principle of Political Economy and Taxation. In John Murray: Vol. Third Edit.Rout, S. K. (2018). A brief review on intellectual property rights with special attention on patent. Journal of Applied and Advanced Research, 3(3), 73–77.
Saghir, R., Khan, M. A., & Ellahi, N.(2019). Bureaucratic Efficiency as Determinant of Trade Openness in SAARC Countries. Global Social Sciences Review, IV(III), 31–38. https://doi.org/10.31703/gssr.2019(iv-iii).05
Saha, C. N., & Bhattacharya, S. (2011). Intellectual property rights : An overview and implications in pharmaceutical industry. Journal of Advanced Pharmaceutical Technology & Research, 2(2), 88–93. https://doi.org/10.4103/2231-4040.82952
Saikia, M., Das, P., & Neog, D. (2023). Evolution of growth theory: from Harrod to Romer Mrinal. Theoretical and Applied Economics, XXX(2(635)), 125–138.
Seung Hyun, L., & To Bin, I. (2015). The Impact of Official Development Assistance on Government Effectiveness: The Mediating Effect of Corruption. The Korean Journal of Policy Studies, 30(2), 193–216. https://doi.org/10.52372/kjps30209
Smeets, R., & Vaal, A. De. (2016). Intellectual Property Rights and the productivity effects of MNE affiliates on host-country firms. International Business Review, 25(1), 419–434. https://doi.org/10.1016/j.ibusrev.2015.08.004
Smith Adam. (1776). The Wealth of Nation. In The Wealth of Nation(Issue 1776).Soeng, R., & Cuyvers, L. (2018). Domestic institutions and export performance: Evidence for Cambodia. Journal of International Trade and Economic Development, 27(4), 389–408. https://doi.org/10.1080/09638199.2017.1386230
Stockman, A. C. (1985). Effects of Inflation on the Pattern of International Trade. The Canadian Journal of Economics, 18(3), 587–601.
Suntharalingam, V., & Hassan, Z. (2016). Conceptual Paper Impact of good governance on international trade in Sub-Saharan African countries. International Journal of Accounting & Business Management, 4(2), 272–284. https://doi.org/10.24924/ijabm/2016.11/v4.iss2/272.284
Thirlwall, A. P. (2011). The balance of payments constraint as an explanation of international growth rate differences. PSL Quarterly Review, 64, 429–438. https://doi.org/10.4324/9780203495360
Thu Hang, D. T., & Lien, N. P. (2022). Effects of Monetary Policy and Government Effectiveness on Economic Growth: Evidence from 49 Countries Worldwide. Hunan Daxue Xuebao/Journal of Hunan University Natural Sciences, 49(8), 44–54. https://doi.org/10.55463/issn.1674-2974.49.8.6
Wang, Y., & Yuan, Y. (2019). Discussion on Cultivating Intellectual Property Talents ofInternational Trade in China. 281(Sschd 2018), 395–398.
Wijaya, W. A., Azwardi, & Bashir, A. (2023). The Role Of Institutional Quality , Foreign Direct Investment , And Country Size On Trade Openness In The ASEAN-6 Region. Journal of Economic Development,Environment and People, 12(1), 5–24.
Wongburanavart, A. (2022). Cooperation in Intellectual Property and the ASEAN Way: Challenges and Opportunities for the ASEAN Economic Community. ASEAN Ideas in Progress Series, 4/2022(May), 1–22.
Zhou, M. (2013). Development Process and Review of the International Trade Theory. International Conference on Education Technology and Management Science (ICETMS 2013) Development, Icetms, 277–281. https://doi.org/10.2991/icetms.2013.276
Agung, A., & Ngurah, S. (2020). Protection of Intellectual Property Rights in International Trade. 3, 13–16.
Akhtar,S. I., & Fergusson, I. F. (2014). Intellectual Property Rights and International Trade.
Ali, N., & Xialing, L. (2017). Foreign Direct Investment , International Trade and Economic Growth in Pakistan ’ s Economic Perspective. August. https://doi.org/10.5923/j.economics.20170705.02
Amassoma, D., Ogbuagu, M. I., & Niniola, F. E. (2020). International Trade, Intellectual Property Right and Economic Development in Nigeria: Is There Any Link? Journal of Business and Entrepreneurship, 8(2), 1–25. http://ojs.sampoernauniversity.ac.id
Amin Mansouri, S. (2022). A Brief Review of the Evolution of International Trade Theories. International Journal Of Business and Development Studies, 14(2), 93–108. https://doi.org/10.22111/ijbds.2022.7518.
Andrews, M. (2008). Are One-Best-Way Models of Effective Government Suitable for Developing Countries?March.
Auriol, E., Biancini, S., & Paillacar, R. (2023). Intellectual property rights protection and trade: An empirical analysis. AFD Research Papers Issue, 162(240), 1–67. https://doi.org/10.1016/j.worlddev.2022.106072
Barra, C., Papaccio, A., & Ruggiero, N. (2023). Government effectiveness and inequality in Italian regions. Economic Change and Restructuring, 56(2), 781–801. https://doi.org/10.1007/s10644-022-09450-z
Burrell, R., Jee, S. J., Hötte, K., & Ring, C. (2023). Intellectual Property Rights, Climate Technology Transfer and Innovation in Developing Countries. INET Oxford Working Paper, 14(2023), 1–95.
Campi, M., & Dueñas, M. (2019). Intellectual property rights , trade agreements , and international trade. Research Policy, 48(3), 531–545. https://doi.org/10.1016/j.respol.2018.09.011
Cho, K., Kim, C., & Shin, J. (2015). Differential effects of intellectual property rights on innovation and economic performance: A cross-industry investigation. Science and Public Policy, 42(6), 827–840. https://doi.org/10.1093/scipol/scv009
Cies, A. (2009). Foreign direct investment and the volume of trade : the case of Poland. 273–291. https://doi.org/10.1007/s10644-009-9072-x
Curtis, J. M. (2012). Intellectual Property Rights and International Trade: An Overview. 3.
Davoudi, S. M. M., Fartash, K., Zakirova, V. G., Belyalova, A. M., Kurbanov, R. A., Boiarchuk, A. V., & 7, Z. M. S. (2018). Testing the Mediating Role of Open Innovation on the Relationship between Intellectual Property Rights and Organizational Performance : A Case of Science and Technology Park. EURASIA Journal of Mathematics, Science and Technology Education, 14(4), 1359–1369. https://doi.org/10.29333/ejmste/83651
Dexter, A. S., Levi, M. D., & Nault, B. R. (2002). International Trade and the Connection Between Excess Demand and Inflation. 1–14.
Diebolt, C., & Perrin, F. (2014). Growth theories. Working Papers De L’afc, 2, 1–22. https://doi.org/10.1007/978-3-642-40406-1_3
Doanh, N. K., & Heo, Y. (2007). Impacts of Intellectual Property Rights on Trade Flows in ASEAN countries. JOURNAL OF INTERNATIONAL AND AREA STUDIES, 14(1), 1–15.
Dong, B., Guo, Y., & Hu, X. (2022). Intellectual property rights protection and export product quality: Evidence from China. International Review of Economics and Finance, 77(September 2021), 143–158. https://doi.org/10.1016/j.iref.2021.09.006
El-Osta, B.,MacPhee, C. R., & Rosenbaum, D. I. (1996). International Trade, Foreign Direct Investment and Domestic Market Performance.
Felis-rota, M. (2010). THE GOVERNANCE THRESHOLD IN INTERNATIONAL TRADE FLOWS.
Fink, C., & Primo, C. A. (1999). How Stronger Protection of Intellectual Property Rights Affects International Trade Flows. 1–24.
Foster, N. (2014). The Journal of International Trade & Economic Development : An International and Comparative Review Intellectual property rights and the margins of internationaltrade. The Journal of International Trade & Economic Development, 23(1), 1–30. https://doi.org/10.1080/09638199.2012.664556
Gilchrist, S., & Zakraj, E. (2019). Trade Exposure and the Evolution of Inflation Dynamics. Finance and Economics Discussion Series, January, 1–46.
Hossain, A. (2018). Basic Concept of Intellectual property Rights ( IPRs ). Bangladesh Journal of Bioethics, 9(1), 24–28.
Kawai, M., Urata, S., Dialogue, P., & Conference, I. (2002). TRADE AND FOREIGN DIRECT INVESTMENT.Khan, S. A. (2020). The Effect of Governance on International Trade and the Mediating Role of Business Regulations. Society & Sustainability, 2(3), 39–52. https://doi.org/10.38157/society_sustainability.v2i3.198
Le, H. T. T., Luong, T. T. D., Nguyen, T. T.T., & Van Nguyen, D. (2022). Determinants of Intellectual Property Rights Protection in Asian Developing Countries. Journal of the Knowledge Economy, October 2022. https://doi.org/10.1007/s13132-022-01051-5
Liu, Y., Chia, C., & Phillips, F. (2020). Precursors of intellectual property rights enforcement in East and Southeast Asia. Industrial Marketing Management, 90, 133–142. https://doi.org/10.1016/j.indmarman.2020.06.013
Merges, R. P. (1996). Contracting into Liability Rules : Intellectual Property Rightsand Collective Rights Organizations. CALIFORNIA LAW REVIEW, 84, 1293–1393.
Mubanani, E. M., & Fadhil, P. N. (2023). Application of the New Growth Theory to Financial Risk Management. Application of the New Growth Theory to Financial Risk Management, 2(1),32–39. https://doi.org/10.59413/eafj/v2.i1.5
Ngouhouo, I., Nchofoung, T., & Njamen Kengdo, A. A. (2021). Determinants of Trade Openness in Sub-Saharan Africa: Do Institutions Matter? International Economic Journal, 35(1), 96–119. https://doi.org/10.1080/10168737.2020.1858323
Nzama, L., Sithole, T., & Kahyaoglu, S. B. (2023). The Impact of Government Effectiveness on Trade and Financial Openness: The Generalized Quantile Panel Regression Approach. Journal of Risk and Financial Management, 16(1). https://doi.org/10.3390/jrfm16010014
Plasmans, J., & Tan, J. (2005). CES IFO E CONOMIC S TUDIES C ONFERENCE ON U NDERSTANDING. 49(June).
Raizada, G., & Dhillon, S. S. (2017). Impact of Intellectual Property Rights on International Trade : Evidence from India. 22(July), 200–210.
Reichman, J. H. (1993). Beyond the Historical Lines of Demarcation : Competititon Law , Intellectual Property Rights , and International Trade After the GATT ’ s Uruguay. 20(1).
Ricado, D. (1821). On the Principle of Political Economy and Taxation. In John Murray: Vol. Third Edit.Rout, S. K. (2018). A brief review on intellectual property rights with special attention on patent. Journal of Applied and Advanced Research, 3(3), 73–77.
Saghir, R., Khan, M. A., & Ellahi, N.(2019). Bureaucratic Efficiency as Determinant of Trade Openness in SAARC Countries. Global Social Sciences Review, IV(III), 31–38. https://doi.org/10.31703/gssr.2019(iv-iii).05
Saha, C. N., & Bhattacharya, S. (2011). Intellectual property rights : An overview and implications in pharmaceutical industry. Journal of Advanced Pharmaceutical Technology & Research, 2(2), 88–93. https://doi.org/10.4103/2231-4040.82952
Saikia, M., Das, P., & Neog, D. (2023). Evolution of growth theory: from Harrod to Romer Mrinal. Theoretical and Applied Economics, XXX(2(635)), 125–138.
Seung Hyun, L., & To Bin, I. (2015). The Impact of Official Development Assistance on Government Effectiveness: The Mediating Effect of Corruption. The Korean Journal of Policy Studies, 30(2), 193–216. https://doi.org/10.52372/kjps30209
Smeets, R., & Vaal, A. De. (2016). Intellectual Property Rights and the productivity effects of MNE affiliates on host-country firms. International Business Review, 25(1), 419–434. https://doi.org/10.1016/j.ibusrev.2015.08.004
Smith Adam. (1776). The Wealth of Nation. In The Wealth of Nation(Issue 1776).Soeng, R., & Cuyvers, L. (2018). Domestic institutions and export performance: Evidence for Cambodia. Journal of International Trade and Economic Development, 27(4), 389–408. https://doi.org/10.1080/09638199.2017.1386230
Stockman, A. C. (1985). Effects of Inflation on the Pattern of International Trade. The Canadian Journal of Economics, 18(3), 587–601.
Suntharalingam, V., & Hassan, Z. (2016). Conceptual Paper Impact of good governance on international trade in Sub-Saharan African countries. International Journal of Accounting & Business Management, 4(2), 272–284. https://doi.org/10.24924/ijabm/2016.11/v4.iss2/272.284
Thirlwall, A. P. (2011). The balance of payments constraint as an explanation of international growth rate differences. PSL Quarterly Review, 64, 429–438. https://doi.org/10.4324/9780203495360
Thu Hang, D. T., & Lien, N. P. (2022). Effects of Monetary Policy and Government Effectiveness on Economic Growth: Evidence from 49 Countries Worldwide. Hunan Daxue Xuebao/Journal of Hunan University Natural Sciences, 49(8), 44–54. https://doi.org/10.55463/issn.1674-2974.49.8.6
Wang, Y., & Yuan, Y. (2019). Discussion on Cultivating Intellectual Property Talents ofInternational Trade in China. 281(Sschd 2018), 395–398.
Wijaya, W. A., Azwardi, & Bashir, A. (2023). The Role Of Institutional Quality , Foreign Direct Investment , And Country Size On Trade Openness In The ASEAN-6 Region. Journal of Economic Development,Environment and People, 12(1), 5–24.
Wongburanavart, A. (2022). Cooperation in Intellectual Property and the ASEAN Way: Challenges and Opportunities for the ASEAN Economic Community. ASEAN Ideas in Progress Series, 4/2022(May), 1–22.
Zhou, M. (2013). Development Process and Review of the International Trade Theory. International Conference on Education Technology and Management Science (ICETMS 2013) Development, Icetms, 277–281. https://doi.org/10.2991/icetms.2013.276
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Published
2024-02-23
How to Cite
Manickam, H. S. ., Idris, S. ., & Nipo, D. T. (2024). The Influence of Intellectual Property Rights (IPR) on ASEAN+5’s International Trade (IT). International Student Conference on Business, Education, Economics, Accounting, and Management (ISC-BEAM), 1(1), 671–687. https://doi.org/10.21009/ISC-BEAM.011.48
