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Is There A Piracy Kuznets Curve?

Author

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  • El Harbi Sana

    (University of Sousse, Tunisia)

  • Grolleau Gilles

    (University of Sousse, Tunisia)

  • Bekir Insaf

    (LAMETA, University of Montpellier/SupAgro)

Abstract

We investigate empirically the relationship between software piracy and GDP per capita by considering non-linear effects. We use a panel data analysis for 100 countries over a period of 15 years. We remedy several previous econometric and methodological shortcomings and show that piracy follows a Kuznets-like curve. Concretely, piracy first increases with the level of GDP per capita, reaches a maximum, and then decreases at higher levels of income. Making people richer can be the best way to decrease piracy over the long-term horizon. Intellectual property rights holders should not aim for a decrease of piracy per se, but rather a decrease of piracy in those circumstances where it is most likely to be substituted by legal sales. Economic growth can generate by itself incentives to curb piracy.

Suggested Citation

  • El Harbi Sana & Grolleau Gilles & Bekir Insaf, 2012. "Is There A Piracy Kuznets Curve?," Review of Law & Economics, De Gruyter, vol. 8(2), pages 433-456, October.
    • Handle: RePEc:bpj:rlecon:v:8:y:2012:i:2:n:4
    DOI: 10.1515/1555-5879.1527
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