He used the Gravity model of trade in estimating the level of bilateral exports or imports between two trading partners.
* Dependent variable: flow of trade between and among countries studied
* Independent or explanatory variables, their expected signs or relationships: GDP (+), population (+), dist. between two countries (-), commonality of language (+), shared borders (+), landlocked state (-).
* In addition, TPP and RCEP indicators or dummy variables are introduced: (a) TB1, 1 if both trading countries are TPP or RCEP members, 0 otherwise, (b) TB2, 1 if exporting country is a TPP or RCEP member, 0 otherwise; (c) TB3, 1 if importing country is a TPP or RCEP member, 0 otherwise. For overlapping memberships, a dummy variable where TPP*RCEP =1 if both trading partners are members of the two trade blocs.
And here are some results.
Then I briefly discussed my article in BusinessWorld that day, Property rights protection in APEC economies. Then I discussed the IPR on medicines aspect of the TPP.
And showed actual texts in the TPP agreement....
Below, from left: Lorenzo Montanari, Exec. Dir. of the Property Rights Alliance (PRA); Dr. Sary Levy, author of IPRI 2015, and Wan Saiful Wan Jan, CEO of IDEAS and Director, SEANET.
1. Joining the TPP has more gains than pains for member-countries, especially in exports and overall GDP expansion.
2. IPR health provisions in TPP are not scary, they do not reduce access to cheaper generic drugs. Existing TRIPS flexibilities are maintained.
3. It seems that the generic pharma lobby + the anti-capitalism, anti-globalization NGOs created more noise and fear than what the TPPA actually provides.
4. There is more to fear in government taxation of medicines, in mandatory drug price discounts and price controls, than IPR protection.
“IPR create incentives for businesses to invest in ideas, to develop new products, and to earn a profit from the sale of those products. This in turn leads to improved customer satisfaction, improved profitability, and greater employment opportunities.”
– Prof. Sinclair Davidson, RMIT Univ. (Econ Dept.), Melbourne, Australia.
The full presentation is posted here.
Free Trade 53, TPP "final push" this September + paper by Dr. Clarete, September 19, 2015
Free Trade 54, Eco-protectionism at APEC 2015 meeting, September 28, 2015
Free Trade 55, TPP Agreement, finally, October 06, 2015
Free Trade 56, Trade, investments and taxes in APEC countries, November 08, 2015