The Role of Intellectual Property Rights in Seed Technology Transfer through Trade – Evidence from U.S. Field Crop Seed Exports

To investigate whether intellectual property rights (IPRs) promote or hinder seed technology diffusion through trade, we use panel data for 134 countries over the period 1985-2010 to evaluate the impact of a country’s IPRs on its seed imports from the U.S. by estimating a gravity equation using both linear and nonlinear (Poisson) fixed effects methods. In both the static and dynamic models, the variable for WTO member countries that have implemented the TRIPs (Trade-Related Aspects of Intellectual Property Rights) agreement consistently shows a significantly positive effect on seed imports. We improve on previous studies by focusing on one type of planting seeds field crop seeds, also accounting for status of growing genetically modified crops, and utilizing an estimation technique (Poisson) that is more viable in the handling of zero trade observations.