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On the trade, growth, and welfare effects of intellectual property rights protection

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  • Yuki Saito

Abstract

To examine how intellectual property rights protection affects trade, growth, and welfare, I develop a two‐country R&D‐based growth model in which final goods firms in both countries determine the range of imported varieties in the overall use of intermediate inputs. I show that strengthening patent protection in either country increases the range of imported varieties of intermediate goods and stimulates economic growth in the country that strengthened patent protection. Moreover, I also show that the Nash equilibrium level of patent protection is stronger than the globally optimal level of patent protection.

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  • Yuki Saito, 2018. "On the trade, growth, and welfare effects of intellectual property rights protection," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 235-254, July.
    • Handle: RePEc:wly:soecon:v:85:y:2018:i:1:p:235-254
    DOI: 10.1002/soej.12277
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