Do Intellectual Property Rights Protection in RTAs Contribute to the Stability of Services Trade?

This study is the first to examine how the strength of intellectual property rights protection (IPRP) in regional trade agreements (RTAs) affects the stability of services trade. Utilizing a structural gravity model for a panel of 76 countries over the period 2003 to 2020, this paper finds that stronger IPRP in RTAs significantly enhances the stability of services exports among member countries. The effect is more pronounced when information mobility between trading partners is stronger and when the gap in domestic IPRP levels between countries is narrower. These findings offer valuable guidance for countries negotiating RTAs to foster more stable trade relations.