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Does software piracy affect economic growth? Evidence across countries

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  • Andrés, Antonio R.
  • Goel, Rajeev K.

Abstract

We examine the effect of software piracy on medium term growth using cross-country data over 2000–2007. While the empirical literature has focused on identifying the causes of software piracy, our contribution is to examine its effects. Our findings suggest that software piracy reduces economic growth over the medium term but the relationship is non-linear – the rate of decrease in economic growth diminishes with piracy increase. This growth-reducing effect is especially pronounced in low income countries. Policy implications are discussed.

Suggested Citation

  • Andrés, Antonio R. & Goel, Rajeev K., 2012. "Does software piracy affect economic growth? Evidence across countries," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 284-295.
    • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:2:p:284-295
    DOI: 10.1016/j.jpolmod.2011.08.014
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    More about this item

    Keywords

    Software piracy; Economic growth; Intellectual Property Rights; Low-income nations;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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