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Legal Enforcement against Illegal Imitation in Developing Countries

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  • Suzuki, Keishun

Abstract

This paper investigates the effect of seizing illegal imitations within developing countries on imitation, innovation, and economic growth. The model shows four main results. First, a higher seizure rate does not always decrease imitative activity in the South because it may encourage the infringer to commit repeated offenses. Second, the model shows a U-shaped relationship between innovation and the strengthening seizure rate. Third, numerical analysis indicates that a sufficiently high seizure rate that is larger than a critical value is required to enhance economic growth. Finally, unlike seizure, the extended model shows that a prohibition on importing Southern illegal imitations in the North necessarily lowers imitative activities.

Suggested Citation

  • Suzuki, Keishun, 2014. "Legal Enforcement against Illegal Imitation in Developing Countries," MPRA Paper 55535, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:55535
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    References listed on IDEAS

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    1. Ryo Horii & Tatsuro Iwaisako, 2007. "Economic Growth with Imperfect Protection of Intellectual Property Rights," Journal of Economics, Springer, vol. 90(1), pages 45-85, January.
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    6. Furukawa, Yuichi, 2007. "The protection of intellectual property rights and endogenous growth: Is stronger always better?," Journal of Economic Dynamics and Control, Elsevier, vol. 31(11), pages 3644-3670, November.
    7. Iwaisako, Tatsuro & Tanaka, Hitoshi & Futagami, Koichi, 2011. "A welfare analysis of global patent protection in a model with endogenous innovation and foreign direct investment," European Economic Review, Elsevier, vol. 55(8), pages 1137-1151.
    8. Glass, Amy Jocelyn & Saggi, Kamal, 2002. "Intellectual property rights and foreign direct investment," Journal of International Economics, Elsevier, vol. 56(2), pages 387-410, March.
    9. Peter Gustafsson & Paul S. Segerstrom, 2011. "North–South Trade With Multinational Firms And Increasing Product Variety," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1123-1155, November.
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    Cited by:

    1. Yuxiang Zou & Tai-Liang Chen, 2018. "Industrial heterogeneity and international product cycles," Journal of Economics, Springer, vol. 125(1), pages 1-25, September.
    2. David J. Scheaf & Matthew S. Wood, 2022. "Entrepreneurial Fraud: A Multidisciplinary Review and Synthesized Framework," Entrepreneurship Theory and Practice, , vol. 46(3), pages 607-642, May.
    3. Akimoto, Kiyoka & Morimoto, Takaaki, 2020. "Examination and Approval of New Patents in an Endogenous Growth Model," Economic Modelling, Elsevier, vol. 91(C), pages 100-109.

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    More about this item

    Keywords

    Innovation; North-South; Seizing Illegal Imitation; Import Prohibition;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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