Seminar Papers, Institute for International Economic Studies, Stockholm University
No 720:
Globalization, Divergence and Stagnation
Gino Gancia
Abstract: In a world where poor countries provide weak protection
for intellectual property rights, market integration will systematically
shift technical change in favor of rich nations. For this reason, free
trade can increase international income differences. At the same time,
integration with countries where intellectual property rights are weakly
protected can have a large adverse effect on the world growth rate. These
results provide a strong rationale for global regulations, critical in a
system of interdependent economies for sustaining innovation and reducing
income inequality. Supportive empirical evidence is presented.
Keywords: Economic Growth; North-South Trade; Intellectual Property Rights; Cross-Country Income Differences; Innovation Diversion; (follow links to similar papers)
JEL-Codes: F14; F43; O33; O34; O41; (follow links to similar papers)
37 pages, June 13, 2003
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