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Migration and Imitation

Bibliographic Data

ID9727207
AuthorsOlena Ivus (0000-0002-7358-4137, Queen's University Canada, corresponding author), Alireza Naghavi (0000-0003-3978-9267, University of Bologna Italy), Larry D Qiu (0000-0001-9219-4903, Lingnan University Hong Kong)
Year2023
Volume90
Issue357
Pages212-239
Publication date2023-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecca.12449
OpenAlexW4308431150
LanguageEN
References cited47

This paper develops a North–South trade model with heterogeneous labour and horizontally differentiated products, and compares the implications of two policies: Southern intellectual property rights (IPR) and Northern immigration policy, with the latter aiming to attract Southern talent as a means of pre‐empting imitation. Individuals self‐select into becoming entrepreneurs and innovate (imitate) in the North (South). The likelihood of imitation depends on product quality, imitator's talent and IPR strength. Several interrelated channels of competition are identified. Allowing high‐talent migration when IPR protection in the South is weak shifts imitation to low‐quality products and innovation to high‐quality products. The outcome is in stark contrast to the policy of strengthening Southern IPR, which limits low‐talent imitation in the South and encourages low‐quality innovation in the North. Migration also increases the income of low‐talent entrepreneurs, as well as the average quality of products imitated by high‐talent entrepreneurs in the South. Global income rises with migration, but is not guaranteed to rise with stronger Southern IPR

Business · Competition (biology) · Economic geography · Economics · Imitation · Industrial organization · Intellectual property · Labour economics · Political science · Product (mathematics) · Quality (philosophy) · Economic Growth and Productivity · Firm Innovation and Growth · Global trade and economics

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