The role of competitors on the relationship between IPR and export of Northeast Asian countries

Abstract

This study investigates the impact of intellectual property rights (IPR) protection and the regulatory role of third countries on exports from Northeast Asian countries (NEAs) during the period 2006-2017. Using the System Generalized Method of Moments (sys-GMM) estimation, the study analyzes how IPR protection in importing countries affects NEA exports across different product categories. The results show that stronger IPR protection in importing countries significantly boosts NEA exports of copyable goods such as primary products, natural resource-intensive goods, and unskilled labor-intensive goods through the market expansion effect. The presence of third countries enhances this effect through increased competition. However, for technology- and human-capital-intensive goods, third-country incentives modify the impact of IPR protection, suggesting a shift toward market power effects. The effect of IPR protection on exports varies across product types and is significantly influenced by third-country competition. The findings suggest that NEA countries should enhance R&D, upgrade trade infrastructure, and promote trade liberalization. Furthermore, linking export profiles with third countries can help maximize the benefits of IPR protection and maintain export competitiveness in the global market.