Statistical Models to Measure the Impact of Intellectual Property Rights Protection on Foreign Trade in Egypt

Abstract

This study aims to estimate the relationship between the Protection of intellectual property rights indices and the foreign trade index in Egypt from 1995 to 2022. The comparison has been made between many models such as the fully modified ordinary least squares (FMOLS) model, dynamic ordinary least squares (DOLS) model, Canonical co-integration regression (CCR) model, and auto-regressive distributed lag (ARDL) model. The results of the study showed that the best model was the ARDL model to increase its explanatory ability. The study also showed that the most important property rights protection indicators affecting the foreign trade index are the number of applications and registrations of brands, the number of patents registered and granted, the number of applications and registrations of industrial designs, and the proportion of expenditure on research and development as a proportion of gross domestic product (GDP). The estimated model also passed all diagnostic tests and showed that there was no auto-correlation and no Heteroskedasticity. In addition, it was found to follow a normal distribution and to be stable.