The Effect of Intellectual Property Rights on Income Inequality in Selected Developed and Developing Countries

Selected Developed and Developing Countries Abstract: Income inequality in the current era is known as one of the most destructive phenomena. Therefore, evaluation of income inequality and the emergence of roots are essential. Income inequality affected important factors which is undoubtedly one of the most important is intellectual property right (IPR). intellectual property rights May have two different effects on income inequality: on the one hand, with the supporting innovation to create employments productive and entrepreneurship, increase productivity and generate wealth through science and technology can reduce the income inequality and the other hand, due to increased prices of goods and services, and technologies resulting from the monopoly worsen income inequality. So, the present study with using econometric conventional technique (panel data approach); to evaluate the effect of IRP on income inequality in selected developed and developing countries during the period 1990-2011. The results indicate that, the effect of IPR on Gini coefficient in developing countries is positive and significant while, this effect is negative and significant in developed countries. Also, GDP per capita and economic openness have negative and significant effects on Gini coefficient in both groups of countries. Square of GDP per capita is negative in both groups of countries and for developed countries, this variable is not significant. In addition, the effect of the human capital variable on Gini coefficient is negative in both group of countries but it is not significant for developing countries.