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Intellectual Property Rights, Foreign Direct Investment and Industrial Development

Bibliographic Data

ID9704843
AuthorsLee Branstetter (Carnegie Mellon University), Kamal Saggi (Columbia University Harvard University Vanderbilt University)
Year2011
Volume121
Issue555
Pages1161-1191
Publication date2011-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2011.02440.x
OpenAlexW2156389627
LanguageEN
Citations received13
References cited34

This paper develops a North-South product model in which Southern imitation and the North-South flow of foreign direct investment (FDI) are endogenously determined. In the model, a strengthening of IPR protection in the South reduces the rate of imitation, which, in turn, increases the flow of FDI. The increase in FDI more than offsets the decline in production undertaken by Southern imitators, so that the South’s share of goods produced by the global economy increases. Furthermore, real wages of Southern workers increase even though prices of goods produced by multinationals exceed those of Southern imitators. The preceding results hold when Northern innovation is endogenously determined; in addition, the rate of innovation increases with a strengthening of Southern IPR protection

Economic history · Economics · Foreign direct investment · Intellectual property · Investment (military · Law and economics · Library science · Management · Political science · Sociology · Computer Science · Firm Innovation and Growth · History · Intellectual Property and Patents · International Business and FDI · Law

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Unique citing works13
Citations per year1
Citation span2013 - 2026 (14)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 13

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