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TRIPs, trade and growth: When comparative advantages break down

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  • de Souza, Eduardo Correia
  • Batista, Jorge Chami
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    Abstract

    In this paper we combine a model of Ricardian comparative advantages as in Dornbusch et al. (1977) with Grossman and Helpman's (1991) quality ladder model and derive the consequences of asymmetric IPRs protection for the pattern of trade and the world rate of growth through innovation. Our analysis differs from that already made by Taylor (1994) in that final goods and research technologies do not go exactly along together, so the impossibility of doing licensing under asymmetric protection will here bring forth an infringement of comparative advantages which we call “the invasion effect”.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X11000440
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    Bibliographic Info

    Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

    Volume (Year): 22 (2011)
    Issue (Month): 4 ()
    Pages: 327-341

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    Handle: RePEc:eee:streco:v:22:y:2011:i:4:p:327-341

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    Web page: http://www.elsevier.com/locate/inca/525148

    Related research

    Keywords: Ricardian trade; Endogenous growth; Quality ladder; Intellectual property rights; Licensing;

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    References

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    1. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Wendy Carlin & Andrew Glyn & John Van Reenen, 1999. "Export Market Performance of OECD countries: an empirical examination of the role of cost competitiveness," IFS Working Papers W99/22, Institute for Fiscal Studies.
    3. Pierre-Olivier Gourinchas & Olivier Jeanne, 2003. "The Elusive Gains from International Financial Integration," NBER Working Papers 9684, National Bureau of Economic Research, Inc.
    4. Madsen, Jakob B., 2007. "Technology spillover through trade and TFP convergence: 135 years of evidence for the OECD countries," Journal of International Economics, Elsevier, vol. 72(2), pages 464-480, July.
    5. Taylor, M Scott, 1994. "TRIPs, Trade, and Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 361-81, May.
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