LINKAGES BETWEEN INTELLECTUAL PROPERTY RIGHTS REGIME AND INCOME INEQUALITY

  • Swati Saini Centre for International Trade and Development, School of International Studies, Jawaharlal Nehru University, New Mehrauli Road, New Delhi, India
Keywords: Developing countrie, Globalization, Inequality, Intellectual Property Rights

Abstract

This paper examines the impact of strengthening Intellectual Property Rights (IPRs) on within-country income inequality for a cross-section of 65 developed and developing countries for the time period 1995-2009.The results indicated that strengthening of IPRs led to an increase in income inequality in WTO-member developing countries after they started modifying their national IPR regimes to conform to the TRIPs requirements. IPRs tend to raise income inequality by generating a more skewed distribution of wages. Stronger IPRs increased the demand for skilled labor force as it raised the return on R&D activities. This caused a relative increase in skilled labor wages, creating a wage bias in favor of skilled labor against unskilled labor, thus aggravating income inequality within a developing country. Moreover, the effect on inequality was more pronounced for developing countries that were experiencing higher per capita GDP growth rates. As for the developed countries included in the sample, the analysis seemed to suggest that IPRs led to a decline in income inequality over the study period.

Downloads

Download data is not yet available.

References

Adams, S., (2008). Globalization and Income Inequality: Implications for Intellectual Property Rights. Journal of Policy Modeling 30, 725-735. DOI: https://doi.org/10.1016/j.jpolmod.2007.10.005

Anderson, E. (2005). Openness and Inequality in Developing countries: A Review of Theory and Recent Evidence. World Development, 33(7), 1045-1063. DOI: https://doi.org/10.1016/j.worlddev.2005.04.003

Beer, L. (1999). Income Inequality and Transnational Corporate Penetration. Journal of World Systems Research, 5, 1–25. DOI: https://doi.org/10.5195/jwsr.1999.144

Calderón, C., & A. Chong (2001). External Sector and Income Inequality in Interdependent Economies using a Dynamic Panel Data Approach. Economics Letters, 71(2), 225-231. DOI: https://doi.org/10.1016/S0165-1765(01)00374-3

Chen, Y. and T. Puttitanun (2005). Intellectual Property Rights and Innovation in Developingm Countries. Journal of Development Economics, 78, 474-493. DOI: https://doi.org/10.1016/j.jdeveco.2004.11.005

Chin, J. C. and G.M. Grossman. (1988), Intellectual Property Rights and North-South Trade, NBER Working Paper no. 2769, National Bureau of Economic Research, National Bureau of Economic Research, Cambridge. DOI: https://doi.org/10.3386/w2769

Choi, C. (2006). Does Foreign Direct Investment Affect Domestic Income Inequality?. Applied Economics Letters, 13(12), 811-814. DOI: https://doi.org/10.1080/13504850500400637

Chu and Peng, (2011). Effect of TRIPs on Growth, Welfare and Income-inequality in an R&D Growth Model. Journal of Macroeconomics, Vol.33, 276-287. DOI: https://doi.org/10.1016/j.jmacro.2010.10.002

Commission on Intellectual Property Rights (2002), Integrating Intellectual Property Rights and Development Policy, Commission on Intellectual Property Rights, London.

Cozzi, G., & Galli, S. (2011). Upstream Innovation Protection: Common Law Evolution and The Dynamics Of Wage Inequality.

Cragg, Michael I., and Mario Epelbaum, 1996, Why has Wage Dispersion Grown in Mexico? Is It the Incidence of Reforms or the Growing Demand for Skills?. Journal of Development Economics, Vol. 51,No. 1, 99–116. DOI: https://doi.org/10.1016/S0304-3878(96)00427-0

Deininger, K., & L. Squire (1998). New Ways of Looking at Old Issues: Inequality and Growth. Journal of Development Economics, 57(2), 259-287. DOI: https://doi.org/10.1016/S0304-3878(98)00099-6

Dollar, D., & A. Kraay (2002). Growth is Good for the Poor. Journal of Economic Growth, 7(3), 195-225. DOI: https://doi.org/10.1023/A:1020139631000

Durlauf, S.N., Johnson, P.A. and J.R.W. Temple (2005), ‘Growth Econometrics’, in Aghion,P. and Durlauf, St. N. (ed.), Handbook of Economic Growth, vol. 1A, Elsevier B.V.,Amsterdam, pp.555-677.

Falvey, R., Foster, N., and D. Greenaway, (2006). Intellectual Property Rights and Economic Growth. Review of Development Economics 10,700-719. DOI: https://doi.org/10.1111/j.1467-9361.2006.00343.x

Falvey, R. E., Foster, N., & O. Memedovic (2006a). The Role of Intellectual Property Rights in Technology Transfer and Economic Growth: Theory and Evidence. UNIDO.Available at http://www.unido.org/fileadmin/user_media/Publications/Research_and_statistics/Branch_public ations/Research_and_Policy/Files/Working_Papers/2006/WPjuly2006%20IPR_rights_in_technol ogy_transfer.pdf. [Accessed 10 Feb,2012].

Published
2018-03-31
How to Cite
Saini, S. (2018). LINKAGES BETWEEN INTELLECTUAL PROPERTY RIGHTS REGIME AND INCOME INEQUALITY . International Journal of Engineering Technologies and Management Research, 5(3), 88-107. https://doi.org/10.29121/ijetmr.v5.i3.2018.180