NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Intellectual Property Rights and North-South Trade

Judith C. Chin, Gene M. Grossman

NBER Working Paper No. 2769 (Also Reprint No. r1490)
Issued in November 1988
NBER Program(s):   ITI   IFM

We study the incentive that a government in the South has to protect the intellectual property rights of Northern firms, and the consequences of the decision taken by the South for welfare in the North and for efficiency of the world equilibrium. We conduct our analysis in the context of a competition between a single Northern producer and a single Southern producer selling some good to an integrated world market. In this competition, only the Northern firm has the ability to conduct R&D in order to lower its production costs, but the Southern firm can imitate costlessly if patent protection for process innovations is not enforced by the government of the South. We find that the interests of the North and the South generally conflict in the matter of protection of intellectual property, with the South benefiting from the ability to pirate technology and the North harmed by such actions. A strong system of intellectual property rights may or may not enhance world efficiency.

download in pdf format
   (185 K)

email paper

This paper is available as PDF (185 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2769

Published: The Political Economy of International Trade, edited by Ronald Jones and Anne O. Krueger, pp. 90-107. Oxford: Basil Blackwell, 1990.

Users who downloaded this paper also downloaded these:
Gallini and Scotchmer Intellectual Property: When Is It the Best Incentive System?
Grossman and Lai w8704 International Protection of Intellectual Property
Shavell and van ypersele w6956 Rewards versus Intellectual Property Rights
Helpman w4081 Innovation, Imitation, and Intellectual Property Rights
Diwan and Rodrik w2974 Patents, Appropriate Technology, and North-South Trade
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us