Work

Do trade agreements contribute to technology internationalization?

Year: 2025

Type: article

Abstract: This paper investigates the effect of shallow and deep free trade agreements (FTAs) on technology internationalization. The main novelty is the use of cross-country patenting applications and co-patenting as main proxies to estimate a gravity model using advanced panel-data techniques that account for endogeneity and third country effects. The model is applied to a panel of 6,480 country pairs comprising high and middle-income countries for the period 1980–2015. The main results indicate that FTAs lead to a significant increase in technology internationalization, especially when they cover trade in goods and services. This effect increases over time in the period following ratification, and contingent both on the policy scope of the FTA and the economic distance between trading partners. Moreover, countries that are geographically and institutionally closer exchange more knowledge and technology. Provisions on intellectual property rights within FTAs contribute to the positive effect.

Source: Journal of International Trade & Economic Development

DOI: 10.1080/09638199.2025.2482549

Authors: Inmaculada Martínez-Zarzoso, Daniela Arregui Coka

Institutions: Universitat Jaume I, University of Göttingen

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

Funders: Generalitat Valenciana, Universitat Jaume I, Ministerio de Ciencia e Innovación