Trade in Intermediate Goods, Endogenous Growth and Intellectual Property Rights
The present paper develops a product cycle model of North South trade and integrates Romer (1990) model and Helpman (1993) model. In this paper, North innovates the variety of intermediate good and South immitates it. Final goods are not traded while variety of capital intensive intermediate goods are traded. The effect of intellectual property rights on economic growth is studied. It is shown that there may exist a unique steady state balanced growth equilibrium or there may exist multiple steady state equilibria and tighter intellectual property rights may lead to both higher and lower steady state balanced growth rate depending on the human capital endowment of both the countries. This contradicts the result obtained by Helpman (1993).
|Length:||21 pages JEL Classification: O31, O34, F18|
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Niels Bohrs Vej 9, 6700 Esbjerg|
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- Rod Falvey & Neil Foster & David Greenaway, 2006. "Intellectual Property Rights and Economic Growth," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 700-719, November.
- Mondal, Debasis & Gupta, Manash Ranjan, 2008. "Intellectual property rights protection and unemployment in a North South model: A theoretical analysis," Economic Modelling, Elsevier, vol. 25(3), pages 463-484, May.
- Schneider, Patricia Higino, 2005. "International trade, economic growth and intellectual property rights: A panel data study of developed and developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 529-547, December.
- Akiyama, Taro & Furukawa, Yuichi, 2009. "Intellectual property rights and appropriability of innovation," Economics Letters, Elsevier, vol. 103(3), pages 138-141, June.
- Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, vol. 55(1), pages 133-153, February.
- Gould, David M. & Gruben, William C., 1996. "The role of intellectual property rights in economic growth," Journal of Development Economics, Elsevier, vol. 48(2), pages 323-350, March.
- Mondal, Debasis & Gupta, Manash Ranjan, 2008. "Innovation, imitation and intellectual property rights: Introducing migration in Helpman's model," Japan and the World Economy, Elsevier, vol. 20(3), pages 369-394, August.
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