Abstract
By influencing the incentives to innovate, intellectual property rights protection may affect economic growth in important ways. An important question for many countries is whether stricter enforcement of intellectual property laws is a good strategy for economic growth. This chapter examines the role of intellectual property rights in economic growth, utilizing cross-country data on patent protection, trade regime, and country-specific characteristics. The evidence suggests that intellectual property protection is a significant determinant of economic growth. These effects appear to be slightly stronger in relatively open economies and are robust to both the measure of openness used and to other alternative model specifications.
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Barro, Robert J. “Economic Growth in a Cross Section of Countries.” Quarterly Journal of Economics, vol. 1991, 106, pp. 407–443
Bhagwati, Jagdish. Anatomy and Consequences of Exchange Control Regimes, Cambridge, Mass: Ballinger Publishing Co., 1978.
Backus, David K.; Kehoe, Patrick J. and Kehoe, Timothy J. “In Search of Scale Effects in Trade and Growth.” Journal of Economic Theory, 1992, vol. 58, pp. 377–409.
Braga, Helson C. and Willmore, Larry N. “Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms.” The Journal of Industrial Economics, June 1991, vol. XXXIX, pp. 421–433.
Magee, Stephen; Brock, William and Young, Leslie. Black Hole Tariffs and Endogenous Policy Theory: Political Economy in General Equilibrium, New York: Cambridge University Press, 1989.
Chin, Judith C. and Grossman, Gene M.. “Intellectual Property Rights and North-South Trade,” in Ronald W. Jones and Anne O. Krueger, eds., The Political Economy of International Trade: Essays in Honor of Robert E. Baldwin. Cambridge, Mass.: Basil Blackwell, 1990,.pp. 90–107
De Long, Bradford J. and Summers, Lawrence H. “Equipment Investment and Economic Growth.” Quarterly Journal of Economics, 1991, vol. 106, pp. 407–502.
Diwan, Ishac and Rodrik, Dani. “Patents, Appropriate Technology, and North-South Trade.” Journal of International Economics, February 1991, vol. 30, pp. 27–48.
Dollar, David. “Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985.” Economic Development and Cultural Change, April 1992, vol. 40, pp. 523–544.
Edwards, Sebastian. “Trade Orientation, Distortions, and Growth in Developing Countries.” Journal of Development Economics, 1992, vol. 39, pp. 31–59.
Evenson, Robert E. “Survey of Empirical Studies,” in Wolfgang E. Siebeck, ed., Strengthening Protection of Intellectual Property in Developing Countries: A Survey of the Literature, World Bank Discussion Chapters 112, Washington D.C.: The World Bank, pp. 33–46, 1990.
Friedman, Milton. “Do Old Fallacies Ever Die.” Journal of Economic Literature, December 1992, vol. 30, pp. 2129–2132.
Gadbaw, Michael R. and Richards, Timothy J. “Introduction,” in Michael R. Gadbaw and Timothy J. Richards, eds., Intellectual Property Rights: Global Consensus, Global Conflict?, Boulder, CO: Westview Press, pp. 1–37, 1988.
Gilbert, R. J. and Newbery, D. “Preemptive Patenting and the Persistence of Monopoly.” American Economic Review, June 1982, vol. 72, pp. 514–526.
Gould, David M. and Ruffin, Roy J. “Human Capital, Trade and Economic Growth.” Federal Reserve Bank of Dallas. Research chapter no. 9301, 1993.
Ruffin, Roy J. —. “A New Comprehensive Measure of Trade Openness.” Federal Reserve Bank of Dallas, Mimeo, 1994.
Grossman, Gene M., and Elhanan Helpman. Innovation and Growth in the Global Economy, Cambridge: MIT Press, 1991.
Helpman, Elhanan. “Innovation, Imitation, and Intellectual Property Rights.” Econometrica, 1993, vol. 61, pp. 1247–1280.
Kormendi, Robert and Meguire, Philip. “Macroeconomic Determinants of Growth: Cross-Country Evidence.” Journal of Monetary Economics, September 1985, pp. 141–163.
Krueger, Anne. Foreign Trade Regimes and Economic Development: Liberalization Attempts and Consequences, Cambridge, Mass: Ballinger Publishing Co., 1978.
Learner, Edward E. “Measures of Openness,” in R. Baldwin, ed., Trade Policy Issues and Empirical Analysis, National Bureau of Economic Research Conference Report Series. Chicago: University of Chicago Press, pp. 147–200 1988.
Levin, Richard C; Klevorick, Alvin K.; Nelson, Richard R. and Winter, Sidney G. “Appropriating the Returns from Industrial Research and Development.” Brookings Chapters on Economic Activity, 1987, vol. 3, pp. 783–820.
Levine, Ross, and Renelt, David. “A Sensitivity Analysis of Cross-Country Growth Regressions.” American Economic Review, 1992, vol. 82, pp. 942–963.
Lucas, Robert E., Jr. “The Mechanics of Economic Development.” Journal of Monetary Economics, 1998, vol. 22, pp. 3–42.
MacLaughlin, Janet H.; Richards, Timothy J. and Kenny, Leigh A. “The Economic Significance of Piracy,” in R. Michael Gadbaw and Timothy J. Richards, eds., Intellectual Property Rights: Global Consensus, Global Conflict?, Boulder, CO: Westview Press, pp. 89–108, 1988.
Mankiw, Gregory N.; Romer, David and Weil, David N. “A Contribution to the Empirics of Economic Growth.” Quarterly Journal of Economics, 1992, vol. 107, pp. 107–437.
Mansfield, Edwin; Rapoport, John; Romeo, Anthony; Wagner, Samuel and Beardsley, George. “Social and Private Rates of Return from Industrial Innovations.” The Quarterly Journal of Economics, May 1977, vol. XCI, pp. 221–240.
Mansfield, Edwin. “How Rapidly Does Industrial Technology Leak Out?” Journal of Industrial Economics, December 1985, vol. XXXIV, pp. 217–223.
—. “Patents and Innovation: An Empirical Study.” Management Science, February 1986, pp. 173–181.
—. “Intellectual Property Protection, Foreign Direct Investment, and Technology Transfer.” IFC Discussion Chapter 19, The World Bank and International Finance Corporation, 1994.
Maskus, Keith and Penubarti, Mohan. “How Trade-Related Are Intellectual Property Rights?” University of Colorado, mimeo, 1993.
Michaely, M.; Papageorgiou, D. and Choksi, A., eds. Liberalizing Foreign Trade: Lessons of Experience in the Developing World, vol. 7, Cambridge, Mass.: Basil Blackwell, 1991.
OECD. “Economic Arguments for Protecting Intellectual Property Rights Effectively.” TC/WP (88) 70, Paris: OECD, 1989.
Primo Braga and Alberto, Carlos. “The Developing Country Case For and Against Intellectual Property Protection,” in Wolfgang E. Siebeck, ed., Strengthening Protection of Intellectual Property in Developing Countries: A Survey of the Literature, World Bank Discussion Chapters 112 Washington D.C.: The World Bank, pp. 69–87, 1990.
Quah, Danny. “Galton’s Fallacy and Tests of the Convergence Hypothesis.” Massachusetts Institute of Technology, (Photocopy), 1990.
Rapp, Richard T. and Rozek, Richard P. “Benefits and Costs of Intellectual Property Protection in Developing Countries.” National Economic Research Associate, Working Chapter #3, 1990.
Rebelo, S. “Long-Run Policy Analysis and Long-Run Growth.” Journal of Political Economy, 1991, vol. 99, pp. 500–521.
Rivera-Batiz, Luis A. and Romer, Paul M. “International trade with endogenous technological change.” European Economic Review, 1991, vol. 35, pp. 971–1004.
Romer, Paul M. “Human Capital and Growth: Theory and Evidence.” Carnegie Rochester Conference Series on Public Policy, 1990a, vol. 32, pp. 251–285.
—. “Endogenous Growth and Technical Change.” Journal of Political Economy, 1990b, vol. 98, pp. 71–102.
Roubini, Nouriel and Sala-i-Martin, Xavier. “Financial Repression and Economic Growth.” Journal of Development Economics, 1992, vol. 39, pp.5–30.
Segerstrom, Paul S.; Anant, T.C.A. and Dinopoulos, Elias. “A Schumpeterian Model of the Product Life Cycle.” American Economic Review, 1990, vol. 80, pp. 1077–1091.
Segerstrom, Paul S. “Innovation, Imitation, and Economic Growth.” Journal of Political Economy, 1991, vol. 99, pp.807–827.
Schankerman, Mark. “How Valuable is Patent Protection? Estimates by Technology Field Using Patent Renewal Data” National Bureau of Economic Research Working Chapter No. 3780, July 1991.
Sherwood, Robert M. Intellectual Property and Economic Development, Boulder, Colo.: Westview Press, 1990.
Siebeck, Wolfgang E. Strengthening Protection of Intellectual Property in Developing Countries: A Survey of the Literature. World Bank Discussion Chapters 112, Washington D.C.: The World Bank, 1990.
Stokey, Nancy L. “Human Capital, Product Quality, and Growth.” Quarterly Journal of Economics, 1991, vol. 106, pp. 587–616.
Summers, Robert and Heston, Alan. “The Penn world table (Mark 5): An expanded set of international comparisons, 1950-1988.” The Quarterly Review of Economics, 1991, vol. 106, pp. 327–368.
Syrquin, Moshe and Chenery, Hollis B. “Patterns of Development, 1950-1983.” World Bank Discussion Chapters No. 41, 1988.
United Nations. The Role of Patents in the Transfer of Technology to Developing Countries. Report of the Secretary General. New York: United Nations, 1964.
—. Department of Economic and Social Affairs (1971), World Economic Survey, 1969-1970, E/4942 ST/ECA/141, 1971.
Vessuri, H.M.C. “O Inventamos O Erramos: The Power of Science in Latin America.” World Development, November 1990, vol. 18, pp. 1543–1553.
World Bank. World Development Report 1987, New York: Oxford University Press, 1987.
—. World Development Report 1991, New York: Oxford University Press, 1991.
Young, Alwyn. “Learning by Doing and the Dynamic Effects of International Trade.” Quarterly Journal of Economics, 1991, vol. 106, pp. 369–405.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1997 Springer Science+Business Media New York
About this chapter
Cite this chapter
Gould, D.M., Gruben, W.C. (1997). The Role of Intellectual Property Rights in Economic Growth. In: Gupta, S.D., Choudhry, N.K. (eds) Dynamics of Globalization and Development. Recent Economic Thought Series, vol 59. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6219-1_10
Download citation
DOI: https://doi.org/10.1007/978-1-4615-6219-1_10
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-7852-5
Online ISBN: 978-1-4615-6219-1
eBook Packages: Springer Book Archive