Intellectual Property Rights Protection and Export Quality Upgrading

Abstract

This paper evaluates the impact of effective IPRs protection on export quality using a factor-proportion model and a sample of 96 Developing countries and economies in transition between 1996-2011. I find that countries with more effective IPRs protection have comparative advantage in producing and exporting higher quality R&D intensive goods. This effect is however contingent on both a country’s level of development and technological capability. The results are robust to batteries of sensitivity checks and alternative indicators of export quality including, export sophistication and complexity.