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With whom do you trade? Defensive innovation and the skill‐bias

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  • Pushan Dutt
  • Daniel Traça
Abstract
We examine whether increased trade with countries with ineffective protection of intellectual property has contributed to the skill‐deepening of the 1980s. We construct an index of effective protection of intellectual property at the country level, combining data on protection of patents and rule of law. Next, we construct an industry‐specific version of this index, using as weights each country's trade share in the total trade of the industry. We find a decline in this trade‐weighted index, owing to a rise in trade with countries with low effective protection of intellectual property, which explains 29% of the rise in within‐industry skill‐intensity. On se demande si un commerce accru avec des pays qui ont une protection inefficace de leur propriété intellectuelle a contribuéà une demande de travail qualifié accrue dans les années 1980. On construit un indice de la protection effective de la propriété intellectuelle au niveau du pays, combinant des données sur la protection des brevets et l’état de droit. Ensuite, on construit une version de cet indice au niveau des industries spécifiques, utilisant comme pondération les parts du commerce de chaque pays dans le commerce total de l’industrie. On note un déclin dans cet indice pondéré par l’importance du commerce international (attribuable à un accroissement du commerce avec les pays qui ont une protection effectivement faible de la propriété intellectuelle) qui explique 29% de l’accroissement dans l’intensité du travail qualifiéà l’intérieur de l’industrie.

Suggested Citation

  • Pushan Dutt & Daniel Traça, 2010. "With whom do you trade? Defensive innovation and the skill‐bias," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(4), pages 1198-1220, November.
    • Handle: RePEc:wly:canjec:v:43:y:2010:i:4:p:1198-1220
    DOI: 10.1111/j.1540-5982.2010.01611.x
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    Cited by:

    1. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Post-Print halshs-02899944, HAL.
    2. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02548691, HAL.
    3. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Documents de travail du Centre d'Economie de la Sorbonne 20005, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02899944, HAL.
    5. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Working Papers hal-02548691, HAL.

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