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The Causal Relationship between IPR Infringement and Socio-economic Factors

Insaf Bekir
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Insaf Bekir: University of Sousse and URFQ, Sousse, Tunisia.

International Journal of Economics and Empirical Research (IJEER), 2015, vol. 3, issue 12, 577-586

Abstract: Purpose: Several studies in recent years have investigated the relationship between Intellectual property rights infringement and socio-economic factors.Methodology: This paper complements the existing literature by analyzing this issue using bivariate Granger causality test. I perform co-integration analysis using an error correction model on data from 100 countries spanning 16 years to assess the causality issue between IPR infringement (proxies by software piracy rate) income (proxies by GDP per capita), sociopolitical factors (proxies by corruption) and legal factor (proxies by rule of law). Findings: The results show that there is bi-direction causality between corruption and piracy rate and that Rule of law has a causal impact on piracy but not the other way around. Recommendations: I find that piracy actually increases growth in the short-run, but growth reduces piracy in the long run.

Keywords: Income; Panel data analysis; Piracy; corruption; rule of law. (search for similar items in EconPapers)
JEL-codes: Q58 O34 O38 (search for similar items in EconPapers)
Date: 2015
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International Journal of Economics and Empirical Research (IJEER) is currently edited by Dr. Muhammad Shahbaz (PhD Applied Economics)

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