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Free trade and protection of intellectual property rights : can we have one without the other?

  • OLIVIER, Jacques
  • GOH, Ai-Ting

    (Universite Catholique de Louvain)

Registered author(s):

    This paper is concerned with the interaction between trade policies and the protection of Intellectual Property Rights (IPRs). In particular, it investigates the welfare implications of an international agreement on one or both policy instruments. The main insights are first, that both sets of policies are substitutes and second, that they are affected by the same Prisoner's Dilemma problem. As a consequence, an agreement in both policy instruments is needed to achieve any positive welfare gains, which supports the long standing claim of policy makers from developed countries that protection of IPRs should be included in multilateral trade agreements.

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    File URL: http://www.hec.fr/var/fre/storage/original/application/cba394038d982ba8f5753ba2da2d14bf.pdf
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    Paper provided by HEC Paris in its series Les Cahiers de Recherche with number 730.

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    Length: 38 pages
    Date of creation: 01 Apr 2001
    Date of revision:
    Handle: RePEc:ebg:heccah:0730
    Contact details of provider: Postal: HEC Paris, 78351 Jouy-en-Josas cedex, France
    Web page: http://www.hec.fr/
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    1. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
    2. Kyle Bagwell & Robert W. Staiger, 1999. "Domestic Policies, National Sovereignty and International Economic Institutions," NBER Working Papers 7293, National Bureau of Economic Research, Inc.
    3. Diwan, Ishac & Rodrik, Dani, 1991. "Patents, appropriate technology, and North-South trade," Journal of International Economics, Elsevier, vol. 30(1-2), pages 27-47, February.
    4. Yong Yang, 1998. "Why Do Southern Countries Have Little Incentive to Protect Northern Intellectual Property Rights?," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 800-816, November.
    5. Grossman, Gene M. & Helpman, Elhanan, 1991. "Trade, knowledge spillovers, and growth," European Economic Review, Elsevier, vol. 35(2-3), pages 517-526, April.
    6. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
    7. Rivera-Batiz, Luis A. & Romer, Paul M., 1991. "International trade with endogenous technological change," European Economic Review, Elsevier, vol. 35(4), pages 971-1001, May.
    8. Bayoumi, Tamim & Coe, David T & Helpman, Elhanan, 1996. "R&D Spillovers and Global Growth," CEPR Discussion Papers 1467, C.E.P.R. Discussion Papers.
    9. Judith C. Chin & Gene M. Grossman, 1988. "Intellectual Property Rights and North-South Trade," NBER Working Papers 2769, National Bureau of Economic Research, Inc.
    10. Edwin Mansfield, 1984. "R&D and Innovation: Some Empirical Findings," NBER Chapters, in: R&D, Patents, and Productivity, pages 127-154 National Bureau of Economic Research, Inc.
    11. Elhanan Helpman, 1992. "Innovation, Imitation, and Intellectual Property Rights," NBER Working Papers 4081, National Bureau of Economic Research, Inc.
    12. Gros, Daniel, 1987. "A note on the optimal tariff, retaliation and the welfare loss from tariff wars in a framework with intra-industry trade," Journal of International Economics, Elsevier, vol. 23(3-4), pages 357-367, November.
    13. Brian R. Copeland, 1990. "Strategic Interaction among Nations: Negotiable and Non-negotiable Trade Barriers," Canadian Journal of Economics, Canadian Economics Association, vol. 23(1), pages 84-108, February.
    14. Baldwin, Richard & Seghezza, Elena, 1996. "Trade-induced Investment-led Growth," CEPR Discussion Papers 1420, C.E.P.R. Discussion Papers.
    15. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
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