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Job Market Candidate at Central European University

Franklin Maduko
I am on the job market this year and will be available for interviews at the EEA Job Market in Rotterdam in December 2019 and AEA Meetings in San Diego in January 2020

Research and Teaching Interests
  • Primary: International Trade
  • Secondary: Applied Econometrics, International Finance/Macro
Contact Information:
Email: madukof@ceu.edu    Phone: +36-702-455809

Address: Department of Economics and Business
         Central European University
         Nador u. 9
         1051 Budapest
         Hungary

References

1) Miklós Koren
   Department of Economics and Business
   Central European University
   Email: korenm@ceu.edu; website: here

2) Istvan Konya
   Department of Economics and Business
   Central European University
   Email: konyai@ceu.edu; website: here
3) Michael Dorsch (Teaching)
   School of Public Policy
   Central European University
   Email: dorschm@spp.ceu.edu, web:here

4) Gabor Békés
   Department of Economics and Business
   Central European University
   Email: bekeg@ceu.edu; website: here

I build a partial equilibrium model to analyse the sensitivity of US exports to changes in intellectual property rights (IPR) in destination countries. In the model, a profit maximizing firm in the North acquires patents on its products and then, decides when and which countries to export. Countries are heterogeneous in their level of IPR protection, imitation risk and economic size, and products have different product life-cycle length. The firm faces a trade-off between market expansion and market power. By exporting to all countries, the firm increases its sales and profit but faces the risk of imitation on its output which robs it of its market power. The model predicts that strengthening IPR laws in countries in the South leads to increased exports from the North especially in sectors with relatively longer product life-cycle length. However, this relationship is non-monotonic as products in sectors at the topmost distribution of product life-cycle length are less sensitive to stricter IPR reforms compare to sectors at the median. By using yearly panel datasets (1989-2006) consisting of US product-destination data, country-level IPR index and cross-sectional product life-cycle length data, I find our empirical results are consistent with the model's predictions. These results point to the importance of IPR policies in determining sectoral patterns of trade flows between countries.