Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model

Angus Chu and Shin-Kun Peng ()

MPRA Paper from University Library of Munich, Germany

Abstract: What are the effects of the WTO's TRIPS Agreement on growth, welfare and income inequality? To analyze this question, we develop an open-economy R&D-driven endogenous-growth model with wealth heterogeneity. Under TRIPS, the North experiences higher growth and welfare at the expense of higher income inequality. As for the South, it experiences higher growth at the expense of lower welfare and higher income inequality. Also, there exists a critical degree for the domestic importance of foreign goods below which global welfare decreases under TRIPS. In light of our findings, we discuss policy implications on China’s accession to the WTO in 2001.

Keywords: endogenous growth; heterogeneity; income inequality; patent policy; TRIPS (search for similar items in EconPapers)
JEL-codes: D31 F13 O34 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-dge, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (2)

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https://mpra.ub.uni-muenchen.de/10956/1/MPRA_paper_10956.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/14473/1/MPRA_paper_14473.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/22253/1/MPRA_paper_22253.pdf revised version (application/pdf)

Related works:
Journal Article: International intellectual property rights: Effects on growth, welfare and income inequality (2011)
Working Paper: International Intellectual Property Rights: Effects on Growth, Welfare and Income Inequality (2009)
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