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STICERD Work in Progress Seminars

The Role of Trademarks in International Trade: Evidence from Chinese Exporters in the African Tyre Industry

Yusuke Kuroishi (LSE)

Friday 28 February 2020 13:00 - 14:00

This event will take place online.

Many of our seminars and public events this year will continue as online seminars or as online and in person. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, current restrictions mean in-person seminars are only open to members of the LSE community (those with a valid LSE ID card).

Those unable to join the seminars in-person are welcome to participate via zoom.

About this event

Since the fact that reliable quality of goods and services cannot be provided has been a great concern in developing countries, how to allow sellers to upgrade their quality has been debated in terms of a public policy among policymakers in recent years, and a trademark has been considered as a key targeting policy. This research provides evidence of how a trademark actually works in a developing country. We focus on a Chinese exporter in an African tyre industry and exploit a sudden change of the member countries ratifying an agreement of an international trademark for our empirical analyses. At an extensive margin, a Chinese exporter decreases the probability of its export to the ratifying countries. At an intensive margin, an exporter is more likely to use a trademark. The effect on other measures depends on whether or not a firm has its own trademark. Without a trademark, the firm decreases its quantity and revenue. On the other hand, the one with a trademark increases its unit price, quantity, quality and revenue. The back-of-the-envelope calculation implies that this international trademark agreement contributes to welfare increase to some extent in the ratifying African countries.

This event will take place online.