Chu, Angus C. and Peng, Shin-Kun (2009): Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model.
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What are the effects of the WTO’s TRIPS Agreement on growth, welfare and income inequality? To analyze this question, we develop an open-economy R&D-growth model with wealth heterogeneity. Under TRIPS, the North experiences higher growth and welfare at the expense of higher income inequality. As for the South, it experiences higher growth at the expense of lower welfare and higher income inequality. There exists a critical degree for the domestic importance of foreign goods below (above) which global welfare decreases (increases) under TRIPS. In light of our findings, we discuss policy implications on China’s accession to the WTO in 2001.
|Item Type:||MPRA Paper|
|Original Title:||Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model|
|Keywords:||endogenous growth; heterogeneity; income inequality; patent policy; TRIPS|
|Subjects:||D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
F - International Economics > F1 - Trade > F13 - Trade Policy; International Trade Organizations
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O34 - Intellectual Property Rights
|Depositing User:||Angus C. Chu|
|Date Deposited:||04. Apr 2009 18:11|
|Last Modified:||20. Feb 2013 03:33|
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Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model. (deposited 08. Oct 2008 10:06)
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