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Free trade and protection of intellectual property rights : can we have one without the other?

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  • OLIVIER, Jacques
  • GOH, Ai-Ting

    (Universite Catholique de Louvain)

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    Abstract

    This paper is concerned with the interaction between trade policies and the protection of Intellectual Property Rights (IPRs). In particular, it investigates the welfare implications of an international agreement on one or both policy instruments. The main insights are first, that both sets of policies are substitutes and second, that they are affected by the same Prisoner's Dilemma problem. As a consequence, an agreement in both policy instruments is needed to achieve any positive welfare gains, which supports the long standing claim of policy makers from developed countries that protection of IPRs should be included in multilateral trade agreements.

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    File URL: http://www.hec.fr/var/fre/storage/original/application/cba394038d982ba8f5753ba2da2d14bf.pdf
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    Bibliographic Info

    Paper provided by HEC Paris in its series Les Cahiers de Recherche with number 730.

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    Length: 38 pages
    Date of creation: 01 Apr 2001
    Date of revision:
    Handle: RePEc:ebg:heccah:0730

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    Postal: HEC Paris, 78351 Jouy-en-Josas cedex, France
    Web page: http://www.hec.fr/
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    Related research

    Keywords: trade policy; intellectual property rights;

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    References

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    1. Tamim Bayoumi & David T. Coe & Elhanan Helpman, 1996. "R&D Spillovers and Global Growth," NBER Working Papers 5628, National Bureau of Economic Research, Inc.
    2. Richard E. Baldwin & Elena Seghezza, 1996. "Trade-Induced Investment-led Growth," NBER Working Papers 5582, National Bureau of Economic Research, Inc.
    3. Helpman, E., 1992. "Innovation, Imitation and intellectual Property Rights," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1597, Harvard - Institute of Economic Research.
    4. Rivera-Batiz, Luis A. & Romer, Paul M., 1991. "International trade with endogenous technological change," European Economic Review, Elsevier, Elsevier, vol. 35(4), pages 971-1001, May.
    5. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS), University of Warwick, Department of Economics 64, University of Warwick, Department of Economics.
    6. Gene M. Grossman & Elhanan Helpman, 1990. "Trade, Knowledge Spillovers, and Growth," NBER Working Papers 3485, National Bureau of Economic Research, Inc.
    7. Diwan, Ishac & Rodrik, Dani, 1989. "Patents, appropriate technology, and North-South trade," Policy Research Working Paper Series 251, The World Bank.
    8. Chin, J.C. & Grossman, G.M., 1988. "Intellectual Property Rigths And North-South Trade," Papers, Princeton, Woodrow Wilson School - Public and International Affairs 143, Princeton, Woodrow Wilson School - Public and International Affairs.
    9. Gros, Daniel, 1987. "A note on the optimal tariff, retaliation and the welfare loss from tariff wars in a framework with intra-industry trade," Journal of International Economics, Elsevier, Elsevier, vol. 23(3-4), pages 357-367, November.
    10. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
    11. Yong Yang, 1998. "Why Do Southern Countries Have Little Incentive to Protect Northern Intellectual Property Rights?," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 31(4), pages 800-816, November.
    12. Brian R. Copeland, 1990. "Strategic Interaction among Nations: Negotiable and Non-negotiable Trade Barriers," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 23(1), pages 84-108, February.
    13. Kyle Bagwell & Robert W. Staiger, 2001. "Domestic Policies, National Sovereignty, And International Economic Institutions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(2), pages 519-562, May.
    14. Edwin Mansfield, 1984. "R&D and Innovation: Some Empirical Findings," NBER Chapters, National Bureau of Economic Research, Inc, in: R & D, Patents, and Productivity, pages 127-154 National Bureau of Economic Research, Inc.
    15. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, American Economic Association, vol. 89(3), pages 379-399, June.
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    Cited by:
    1. Acharya, Viral V, 2002. "Is the International Convergence of Capital Adequacy Regulation Desirable?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3253, C.E.P.R. Discussion Papers.

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