|Abstract: ||Intellectual Property - related products have gained prominence in international trade
volume during the last couple of decades. Concurrently, the international legal regime on Intellectual Property Rights is also expanding; as a result, the debate on intellectual property has intensified in many forums including in the economic, trade, legal, political, and public realms. The main question at these forums is the debate centered on whether Intellectual Property Rights create positive trade and economic impacts as is assumed by policy makers.
The objective of this paper is to examine the relationship between Intellectual Property Rights and economic and trade indicators. To that end, this paper provides an academic review of the legal documentation on Intellectual Property Rights and related empirical evidence from previous academic research. In addition to trade impacts, economic impacts on Intellectual Property Rights are borne through five main channels: innovation, technology transfer, Foreign Direct Investment, economic growth, and welfare. There is a significant relationship between Intellectual Property Rights and economic indicators; nevertheless, the significance of this relationship in terms of the level and nature of the impact is contingent on several factors. These contributory factors include: the nature of the industry of traded goods; the level of development of the receiving country; and the presence of other dimensions –such as administrative, social, political, and cultural elements. While Intellectual Property Rights and economic indicators in developed countries illustrate a significant
and positive relationship, the same relationship is less significant, and in some cases negative for developing/less developed countries. This premise also holds true with respect to the relationship between Intellectual Property Rights and international trade volumes.|