Globalization, Divergence and Stagnation

Gino Gancia ()

No 720, Seminar Papers from Stockholm University, Institute for International Economic Studies

Abstract: In a world where poor countries provide weak protection for intellectual property rights, market integration will systematically shift technical change in favor of rich nations. For this reason, free trade can increase international income differences. At the same time, integration with countries where intellectual property rights are weakly protected can have a large adverse effect on the world growth rate. These results provide a strong rationale for global regulations, critical in a system of interdependent economies for sustaining innovation and reducing income inequality. Supportive empirical evidence is presented.

Keywords: Economic Growth; North-South Trade; Intellectual Property Rights; Cross-Country Income Differences; Innovation Diversion (search for similar items in EconPapers)
JEL-codes: F14 F43 O33 O34 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2003-06-13
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Related works:
Working Paper: Globalization, Divergence and Stagnation (2004)
Working Paper: Globalization, Divergence and Stagnation (2003)
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Persistent link: http://EconPapers.repec.org/RePEc:hhs:iiessp:0720

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