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The Effect of GDP Growth on Pharmaceutical Patent Protection, 1945-2005

  • Summer La Croix
  • Ming Liu

We investigate whether there is a U-shaped relationship between GDP per capita and country patent protection for pharmaceuticals. Using the Pharmaceutical Intellectual Property Protection (PIPP) Index, we find no evidence of a U-shaped relationship for any of the 154 countries in our sample or for global aggregates. There is, however, evidence for a U-shaped relationship in some annual cross-section scatter plots and Tobit regressions. Using a random-effects Tobit estimator and cubic as well as quadratic GDP per capita variables, we find evidence both for and against a monotonically increasing relationship between GDP and the predicted PIPP Index.

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Article provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.

Volume (Year): 52 (2009)
Issue (Month): 3/4 ()
Pages: 355-375

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Handle: RePEc:bxr:bxrceb:2013/80767
Note: Numéro Spécial « Vers une nouvelle histoire économique des brevets ?» Editeurs :Claude Diebolt et Karine Pellier
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