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Trade in Intermediate Goods, Endogenous Growth and Intellectual Property Rights

Bidisha Chakraborty ()

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: The present paper develops a product cycle model of North South trade and integrates Romer (1990) model and Helpman (1993) model. In this paper, North innovates the variety of intermediate good and South immitates it. Final goods are not traded while variety of capital intensive intermediate goods are traded. The effect of intellectual property rights on economic growth is studied. It is shown that there may exist a unique steady state balanced growth equilibrium or there may exist multiple steady state equilibria and tighter intellectual property rights may lead to both higher and lower steady state balanced growth rate depending on the human capital endowment of both the countries. This contradicts the result obtained by Helpman (1993).

Keywords: North-South trade; Product development; Intellectual property rights; Human Capital; Endogenous growth; Steady state equilibrium (search for similar items in EconPapers)
Pages: 21 pages JEL Classification: O31, O34, F18
Date: 2011-09
New Economics Papers: this item is included in nep-dge, nep-fdg, nep-int, nep-ipr and nep-pr~
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Chapter: Trade in Intermediate Goods, Endogenous Growth and Intellectual Property Rights (2016)
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