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TRIPs, trade and growth: When comparative advantages break down

Eduardo Correia de Souza and Jorge Chami Batista

Structural Change and Economic Dynamics, 2011, vol. 22, issue 4, 327-341

Abstract: In this paper we combine a model of Ricardian comparative advantages as in Dornbusch et al. (1977) with Grossman and Helpman's (1991) quality ladder model and derive the consequences of asymmetric IPRs protection for the pattern of trade and the world rate of growth through innovation. Our analysis differs from that already made by Taylor (1994) in that final goods and research technologies do not go exactly along together, so the impossibility of doing licensing under asymmetric protection will here bring forth an infringement of comparative advantages which we call “the invasion effect”.

Keywords: Ricardian trade; Endogenous growth; Quality ladder; Intellectual property rights; Licensing (search for similar items in EconPapers)
JEL-codes: O31 O33 O34 O41 O47 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:22:y:2011:i:4:p:327-341

DOI: 10.1016/j.strueco.2011.07.002

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