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Some Effects of Intellectual Property Protection on National Economies: Theoretical and Econometric Study

Author

Listed:
  • Tomáš Evan
  • Pavla Vozárová
  • Ilya Bolotov

Abstract

This paper aims to theoretically derive and afterwards econometrically assess the impact of intellectual property protection (IPP) on national economies. The authors' main hypothesis is that by creating a form of non-market protection, IPP limits free competition and has no positive effects on national economies and the world economy in general. The hypothesis is tested through estimation of relationship between charges for the use of intellectual property and 1) gross domestic product, 2) GDP growth, 3) unemployment, 4) exports of high-tech products, 5) FDI outflow, and 6) expenses on research and development in a panel dataset of 146 countries in years 2005-2014 based Arellano-Bond estimator for dynamic panel models. The data tells us that changes in these charges have not a significant impact on the studied indicators, which counts against claims of positive impact of IPP on economies and growth.

Suggested Citation

  • Tomáš Evan & Pavla Vozárová & Ilya Bolotov, 2018. "Some Effects of Intellectual Property Protection on National Economies: Theoretical and Econometric Study," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(1), pages 73-91.
    • Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:644:p:73-91
    DOI: 10.18267/j.pep.644
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    References listed on IDEAS

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    More about this item

    Keywords

    intellectual property; economic theory; dynamic panel;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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