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International intellectual property rights protection and economic growth with costly transfer

Kazuyoshi Ohki

No 15-25, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper develops a product-cycle model with costly technology transfer, which requires re- sources from both the North and the South. In the basic model , we show that strengthening IPR protection induces a large technology transfer and narrows the North-South wage gap. However, we obtain an ambiguous result regarding the effect on economic growth, which depends crucially on the size of the transfer cost. Although strengthening IPR protection induces a high growth rate when the transfer cost is small, it can induce a low growth rate when the transfer cost is large. In the extended model, in order to examine what factors determine the transfer cost, we consider the situation where the Southern firms may misbehave and the Northern firms incur a cost to monitor them. We show that the degree of investor protection and the degree of morality in developing countries influence the size of the transfer cost, which affects economic growth.

Keywords: R&D; product-cycle model; technology transfer; IPR protection (search for similar items in EconPapers)
JEL-codes: F12 F23 F43 O31 O34 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2015-10
New Economics Papers: this item is included in nep-fdg, nep-ino, nep-ipr and nep-pr~
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Journal Article: International intellectual property rights protection and economic growth with costly transfer (2017) Downloads
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