Centre for Development Economics
Department of Economics

Delhi School of Economics


Do Preferential Trade Agreements Stimulate Non-Resident Patenting? Evidence from BRICS


Qayoom Khachoo
(C.D.E. Post Doc Fellow)

(Thursday, May  25, 2023, 3:15 PM IST)
Venue: Amex Room 


Utilizing a novel cross-country panel dataset on patent filings, we endeavour to explore the impact of preferential trade agreements (PTAs) on non-resident patenting in the emerging market economies of BRICS. We use the augmented version of gravity model to describe the bilateral patenting flows as the function of destination market size, innovative capacity of source countries and vector of bilateral trade and patenting frictions. Further, we explore the differential impact of PTAs while focusing on deep and shallow agreements. The PPML (poisson-pseudo maximum likelihood) estimates suggest that PTAs have a positive and statistically significant impact on non-resident patent filings in BRICS. In particular, we find 35% more filings in country-pairs with PTAs relative to the control group (country pairs with no PTAs). Further, deep PTAs matter more in foreign patenting upsurge in BRICS compared to shallow agreements. However, the shallow PTAs exhibit positive medium term but negative long-term effects on patent flows, whereas deep PTAs unveil positive anticipatory effects.
All are cordially invited.

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