Intellectual property rights and development: the spatial relationships
Purpose - The purpose of this paper is to provide evidence that the U-shaped relationship between intellectual property rights (IPRs) and per capita gross domestic product (GDP) observed in the past literature using a panel of data is not a consequence of longitudinal forces, as has been previously postulated, but instead a consequence of cross-sectional influences. Design/methodology/approach - Differences in the longitudinal and cross-sectional relationship between IPRs and per capita GDP are analyzed through a variety of methods, including pooled regression analysis that isolates the regional differences that are critical in making an accurate longitudinal analysis from the panel data. Findings - Analyzing the country data reveals that a longitudinal U-shaped relationship is counterfactual, as countries generally do not weaken their IPRs once they are in place, barring a regime change or other alteration in their political economy. The significant U-shape link between IPRs and per capita GDP empirically observed in preliminary analysis of the panel data is instead a result of cross-sectional influences. Originality/value - Making the distinction between the cross-sectional and longitudinal relationship between IPRs and per capita GDP provides a more accurate insight about how IPRs change in a country as it develops.
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Volume (Year): 37 (2010)
Issue (Month): 5 (September)
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