| By: |
Giuseppe Cavaliere;
Graziano Moramarco;
Alireza Naghavi |
| Abstract: |
This paper investigates the potential benefits of intellectual property rights
(IPR) institutions for international production networks. Using unique data on
manufacturer-supplier linkages in the automotive industry, we establish a
positive empirical relationship between the productivity and efficiency of
manufacturing firms and IPR protection in their suppliers’ locations. Notably,
IPRs do not have the same impact on ownership networks, and protection of
physical property rights does not generate any improvement in performance. We
confirm that the results are not driven by other firm-level characteristics
and address potential endogeneity concerns by employing a novel gravity-based
IV approach, followed by a GMM analysis. |
| Keywords: |
International production networks, Intellectual property rights, Ownership, Internalization, Automotive industry, Knowledge dissipation, Firm efficiency |
| JEL: |
F21 F23 L14 L25 L62 O34 G32 |
| Date: |
2024–01–16 |
| URL: |
http://d.repec.org/n?u=RePEc:csl:devewp:492&r=knm |