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Welfare effects of intellectual property in North-South model of endogenous growth with comparative advantage

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dc.creator Saint-Paul, Gilles
dc.date 2007
dc.date.accessioned 2013-10-16T06:57:26Z
dc.date.available 2013-10-16T06:57:26Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/17924
dc.identifier ppn:557914515
dc.identifier RePEc:zbw:ifwedp:5515
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/17924
dc.description This paper develops a model for analyzing the costs and benefits of intellectual property enforcement in LDCs. The North is more productive than the South and is the only source of innovator. There are two types of goods, and each bloc has a comparative advantage in producing a specific type of good. If comparative advantage is strong enough, even under piracy there are goods that the South will not produce. Piracy will then lead to a reallocation of innovative activity in favor of these goods. That may harm consumers (including consumers in the South) to the extent that these goods have smaller dynamic learning externalities than the other goods, and that their share in consumption is small. Thus, whether or not piracy is in the interest of the South depends on how important are the goods for which it has a comparative advantage to its consumers, and what the growth potential of these goods is. While, all else equal, the North tends to lose more (or gain less) from piracy than the South, because monopoly profits eventually accrue to the North, the South may lose more than the North if there is a strong enough home bias in favor of the goods for which it has a comparative advantage.
dc.language eng
dc.publisher Kiel Institute for the World Economy (IfW) Kiel
dc.relation Economics Discussion Papers / Institut für Weltwirtschaft 2007-1
dc.rights http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
dc.subject F12
dc.subject O30
dc.subject O34
dc.subject F13
dc.subject ddc:330
dc.subject Piracy
dc.subject Intellectual property
dc.subject innovation
dc.subject growth
dc.subject comparative advantage
dc.title Welfare effects of intellectual property in North-South model of endogenous growth with comparative advantage
dc.type doc-type:workingPaper


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