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International strengthen of intellectual property rights, and financial markets development

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Abstract

We study the effects of an international increase of the legal protection of Intellectual Property Rights (IPR), on technological progress and the development of financial market. In particular, we demonstrate that the international agreement on Trade-Related aspects of Intellectual Property Rights (TRIPs for short) promote, at the same time, technological progress and stock market capitalization.

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Notes

  1. There are many previous important treaties on IPR protection like, for example, the Paris convention for the Protection of Intellectual Industrial Property of 1883 as modified in 1979, the Patent Cooperation Treaty of 1970 and the Strasbourg Agreement concerning the International Patent classification of 1971.

  2. All the variables are function of time, but the term t is suppressed due to space constraint.

  3. Park (2008) affirm that “… The adoption of stronger patent laws and the composition of patent rights vary across countries by level of economic development …”.

  4. Following the suggestion of the referee we have performed the Wu-Hausman test for endogeneity. The residual of regression are nor statistically significant and nor significantly different from zero, so conclude that there is no endogeneity bias in the estimates (the result of test are: Wu-Hausman F(1,798) = 2.65359; p = 0.1037). To further support our conclusions we have run regressions, using (5) and (7) separately, with and without the instrumental variable accounting for differences in legal system (common law and civil law), and always the value of R-squared is greater without considering the instrumental variable.

  5. They are available upon request from the author.

  6. Even in correlation matrix was found a negative sign between mclc and G&Pindex 2005.

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Acknowledgments

I am grateful to the Editor, prof. James Payne and an anonymous referee for unvaluable suggestions regarding a previous draft of this work. All errors are the author’s alone.

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  1. Faculty of Law, University of Catania, via Gallo n. 24, 95124, Catania, Italy

    Giuseppe Di Vita

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  1. Giuseppe Di Vita
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Correspondence to Giuseppe Di Vita.

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Di Vita, G. International strengthen of intellectual property rights, and financial markets development. J Econ Finan 40, 60–67 (2016). https://doi.org/10.1007/s12197-014-9292-4

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