Chu, Angus C. and Peng, Shin-Kun (2010): International Intellectual Property Rights: Effects on Growth, Welfare and Income Inequality.
This is the latest version of this item.
Download (192Kb) | Preview
What are the effects of strengthening developing countries' protection for intellectual property rights on economic growth, social welfare and income inequality in the global economy? To analyze this question, we develop a two-country R&D-based growth model with wealth heterogeneity. We find that the North experiences higher growth and welfare at the expense of higher income inequality while the South experiences higher growth at the expense of lower welfare and higher income inequality. As for global welfare, there exists a critical degree of cross-country spillovers below (above) which global welfare decreases (increases). In light of these findings, we discuss policy implications on China's accession to the World Trade Organization in 2001.
|Item Type:||MPRA Paper|
|Original Title:||International Intellectual Property Rights: Effects on Growth, Welfare and Income Inequality|
|Keywords:||economic growth; income inequality; intellectual property rights; 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:||22. Apr 2010 21:01|
|Last Modified:||12. Feb 2013 12:17|
Adams, S., 2008. Globalization and income inequality: implications for intellectual property rights. Journal of Policy Modeling 30, 725-735.
Alesina, A., and Rodrik, D., 1994. Redistributive politics and economic growth. Quarterly Journal of Economics 436, 465-490.
Atkinson, A., 2000. The changing distribution of income: evidence and explanations. German Economic Review 1, 3-18.
Atkinson, A., 2003. Income inequality in OECD countries: data and explanations. CESifo Economic Studies 49, 479-513.
Barro, R., 2000. Inequality and growth in a panel of countries. Journal of Economic Growth 5, 5-32.
Benabou, R., 1996. Heterogeneity, stratification, and growth: macroeconomic implications of the community structure and school finance. American Economic Review 86, 584-609.
Bertola, G., Foellimi, R., and Zweimuller, J., 2006. Income distribution in macroeconomic models. Princeton, NJ: Princeton University Press.
Chen, Y., and Puttitanun, T., 2005. Intellectual property rights and innovation in developing countries. Journal of Development Economics 78, 474-493.
Chen, Y., and Turnovsky, S., 2010. Growth and inequality in a small open economy. Journal of Macroeconomics, forthcoming.
Chou, C., and Talmain, G., 1996. Redistribution and growth: Pareto improvements. Journal of Economic Growth 1, 505-523.
Chu, A., 2009. Effects of blocking patents on R&D: a quantitative DGE analysis. Journal of Economic Growth 14, 55-78.
Chu, A., 2010. Effects of patent policy on income and consumption inequality in an R&D growth Model. Southern Economic Journal, forthcoming.
Cozzi, G., Giordani, P., and Zamparelli, L., 2007. The refoundation of the symmetric equilibrium in Schumpeterian growth models. Journal of Economic Theory 136, 788-797.
Dinopoulos, E., and Segerstrom, P., 2010. Intellectual property rights, multinational firms and economic growth. Journal of Development Economics 92, 13-27.
Diwan, I., and Rodrik, D., 1991. Patents, appropriate technology, and North-South trade. Journal of International Economics 30, 27-48.
Foellmi, R., and Zweimuller, J., 2006. Income distribution and demand-induced innovations. Review of Economic Studies 73, 941-960.
Forbes, K., 2000. A reassessment of the relationship between inequality and growth. American Economic Review 90, 869-887.
Galor, O., and Tsiddon, D., 1997. Technological progress, mobility and economic growth. American Economic Review 87, 363-382.
Galor, O., and Zeira, J., 1993. Income distribution and macroeconomics. Review of Economic Studies 60, 33-52.
García-Peñalosa, C., and Turnovsky, S., 2006. Growth and income inequality: a canonical model. Economic Theory 28, 25-49.
García-Peñalosa, C., and Turnovsky, S., 2007. Growth, income inequality, and fiscal policy: what are the relevant tradeoffs? Journal of Money, Credit and Banking 39, 369 - 394.
Glass, A., and Saggi, K., 2002a. Licensing versus direct investment: implications for economic growth. Journal of International Economics 56, 131-153.
Glass, A., and Saggi, K., 2002b. Intellectual property rights and foreign direct investment. Journal of International Economics 56, 387-410.
Griliches, Z., 1992. The search for R&D spillovers. Scandinavian Journal of Economics 94, 29-47.
Grossman, G., and Helpman, E., 1991a. Quality ladders in the theory of growth. Review of Economic Studies 58, 43-61.
Grossman, G., and Helpman, E., 1991b. Endogenous product cycles. Economic Journal 101, 1241-1229.
Grossman, G., and Lai, E., 2004. International protection of intellectual property. American Economic Review 94, 1635-1653.
Helpman, E., 1993. Innovation, imitation, and intellectual property rights. Econometrica 61, 1247-1280.
Hu, A., and Jefferson, G., 2009. A great wall of patents: what is behind China’s recent patent explosion? Journal of Development Economics, 90, 57-68.
Jones, C., 1999. Growth: with or without scale effects. American Economic Review Papers and Proceedings 89, 139-144.
Jones, C., and Williams, J., 1998. Measuring the social return to R&D. Quarterly Journal of Economics 113, 1119-1135.
Jones, C., and Williams, J., 2000. Too much of a good thing? The economics of investment in R&D. Journal of Economic Growth 5, 65-85.
Kuznets, S., 1955. Economic growth and income inequality. American Economic Review 45, 1-28.
Lai, E., 1998. International intellectual property rights protection and the rate of product innovation. Journal of Development Economics 55, 133-153.
Lai, E., and Qiu, L., 2003. The North's intellectual property rights standard for the South? Journal of International Economics 59, 183-209.
Li, C., 1998. Inequality and growth: a Schumpeterian perspective. University of Glasgow Working Paper 9609.
Li, C., 2001. On the policy implications of endogenous technological progress. Economic Journal 111, C164-C179.
Li, H., and Zou, H., 1998. Income inequality is not harmful for growth: theory and evidence. Review of Development Economics 2, 318-334.
Nakamura, L., 2003. A trillion dollars a year in intangible investment and the new economy. In Intangible Assets: Values, Measures, and Risks, edited by J. Hand and B. Lev. Oxford, UK: Oxford University Press, pp. 19-47.
Nordhaus, W., 1969. Invention, growth, and welfare. Cambridge, Mass.: MIT Press.
O'Donoghue, T., and Zweimuller, J., 2004. Patents in a model of endogenous growth. Journal of Economic Growth 9, 81-123.
Park, W., 2008. International patent protection: 1960-2005. Research Policy 37, 761-766.
Peng, S.-K., Thisse, J.-F.; and Wang, P., 2006. Economic integration and agglomeration in a middle product economy. Journal of Economic Theory 131, 1-25.
Perotti, R., 1996. Growth, income distribution, and democracy: what the data say. Journal of Economic Growth 1, 149-187.
Persson, T., and Tabellini, G., 1994. Is inequality harmful for growth? American Economic Review 84, 600-621.
Reed, D., and Cancian, M., 2001. Sources of inequality: measuring the contributions of income sources to rising family income inequality. Review of Income and Wealth 47, 321-333.
Reichman, J., 1995. Universal minimum standards of intellectual property protection under the TRIPS component of the WTO agreement. International Lawyer 29, 345-388.
Saint-Paul, G., and Verdier, T., 1993. Education, democracy, and growth. Journal of Development Economics 42, 399-407.
Yang, G., and Maskus, K., 2001. Intellectual property rights, licensing, and innovation in an endogenous product-cycle model. Journal of International Economics 53, 169-187.
Zweimuller, J., 2000. Schumpeterian entrepreneurs meet Engel's law: the impact of inequality on innovation-driven growth. Journal of Economic Growth 5, 185-206.
Available Versions of this Item
Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model. (deposited 08. Oct 2008 10:06)
Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model. (deposited 04. Apr 2009 18:11)
- International Intellectual Property Rights: Effects on Growth, Welfare and Income Inequality. (deposited 22. Apr 2010 21:01) [Currently Displayed]
- Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model. (deposited 04. Apr 2009 18:11)