IDEAS home Printed from https://ideas.repec.org/a/taf/jocebs/v8y2010i3p253-267.html
   My bibliography  Save this article

Market structure, FDI, imitation and innovation: a model of North-South intellectual property rights conflict

Author

Listed:
  • Ziyin Zhuang
  • Wei Zou

Abstract

We develop an extended North-South model to analyse the US-China IPRs conflict and possible policies. In our model, innovation in the North (US), imitation in the South (China), and Foreign Direct Investment (FDI) are all endogenous. We predict that whether tighter IPRs benefit the US or China depends crucially on market structure. In an oligopoly market induced by vertical innovation, tighter IPRs hurt both economies; while, in a monopolistic competition market induced by horizontal innovation, tighter IPRs benefit both economies as long as the degree of IPRs is appropriately chosen. We prove the existence of an optimal degree of IPRs protection in China, which may differentiate it from that in the US.

Suggested Citation

  • Ziyin Zhuang & Wei Zou, 2010. "Market structure, FDI, imitation and innovation: a model of North-South intellectual property rights conflict," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(3), pages 253-267.
  • Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:253-267
    DOI: 10.1080/14765284.2010.493640
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493640
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:253-267. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RCEA20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.