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Globalization, Divergence and Stagnation

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  • Gancia, Gino

    (Institute for International Economic Studies, Stockholm University)

Abstract

In a world where poor countries provide weak protection for intellectual property rights, market integration will systematically shift technical change in favor of rich nations. For this reason, free trade can increase international income differences. At the same time, integration with countries where intellectual property rights are weakly protected can have a large adverse effect on the world growth rate. These results provide a strong rationale for global regulations, critical in a system of interdependent economies for sustaining innovation and reducing income inequality. Supportive empirical evidence is presented.

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Bibliographic Info

Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number 720.

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Length: 37 pages
Date of creation: 13 Jun 2003
Date of revision:
Handle: RePEc:hhs:iiessp:0720

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Postal: Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden
Phone: +46-8-162000
Fax: +46-8-161443
Web page: http://www.iies.su.se/
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Keywords: Economic Growth; North-South Trade; Intellectual Property Rights; Cross-Country Income Differences; Innovation Diversion;

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References

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  2. Kiminori Matsuyama, 1999. "A Ricardian Model with a Continuum of Goods under Non-homothetic Preferences: Demand Complementarities, Income Distribution, and North-South Trade," Discussion Papers 1241, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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  9. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170 Elsevier.
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Citations

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Cited by:
  1. Jaume Ventura, 2005. "A Global View of Economic Growth," NBER Working Papers 11296, National Bureau of Economic Research, Inc.
  2. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170 Elsevier.
  3. Dinopoulos, Elias & Segerstrom, Paul, 2003. "A Theory of North-South Trade and Globalization," CEPR Discussion Papers 4140, C.E.P.R. Discussion Papers.
  4. Piotr Stryszowski, 2006. "Intellectual Property Rights, Globalization and Growth," International Trade and Finance Association Conference Papers 1086, International Trade and Finance Association.
  5. Gabriel Felbermayr, 2004. "Does trade cause divergence? Dynamic panel data evidence," Economics working papers 2004-07, Department of Economics, Johannes Kepler University Linz, Austria.
  6. Jonathan Eaton & Samuel Kortum, 2006. "Innovation, Diffusion, and Trade," NBER Working Papers 12385, National Bureau of Economic Research, Inc.
  7. Daron Acemoglu, 2005. "Equilibrium Bias of Technology," NBER Working Papers 11845, National Bureau of Economic Research, Inc.
  8. Schiffbauer, Marc, 2006. "Theoretical and methodological study on the role of public policies in fostering innovation and growth," Papers DYNREG04, Economic and Social Research Institute (ESRI).

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