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The Causal Relationship between IPR Infringement and Socio-economic Factors

Author

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  • Insaf Bekir

    (University of Sousse and URFQ, Sousse, Tunisia.)

Abstract

Purpose: Several studies in recent years have investigated the relationship between Intellectual property rights infringement and socio-economic factors.Methodology: This paper complements the existing literature by analyzing this issue using bivariate Granger causality test. I perform co-integration analysis using an error correction model on data from 100 countries spanning 16 years to assess the causality issue between IPR infringement (proxies by software piracy rate) income (proxies by GDP per capita), sociopolitical factors (proxies by corruption) and legal factor (proxies by rule of law). Findings: The results show that there is bi-direction causality between corruption and piracy rate and that Rule of law has a causal impact on piracy but not the other way around. Recommendations: I find that piracy actually increases growth in the short-run, but growth reduces piracy in the long run.

Suggested Citation

  • Insaf Bekir, 2015. "The Causal Relationship between IPR Infringement and Socio-economic Factors," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(12), pages 577-586, December.
    • Handle: RePEc:ijr:journl:v:3:y:2015:i:12:p:577-586
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    References listed on IDEAS

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    More about this item

    Keywords

    Income; Panel data analysis; Piracy; corruption; rule of law.;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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