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Trade in Intermediate Goods, Endogenous Growth and Intellectual Property Rights

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  • Bidisha Chakraborty

Abstract

The present paper develops a product cycle model of North South trade and integrates Romer (1990) model and Helpman (1993) model. In this paper, North innovates the variety of intermediate good and South immitates it. Final goods are not traded while variety of capital intensive intermediate goods are traded. The effect of intellectual property rights on economic growth is studied. It is shown that there may exist a unique steady state balanced growth equilibrium or there may exist multiple steady state equilibria and tighter intellectual property rights may lead to both higher and lower steady state balanced growth rate depending on the human capital endowment of both the countries. This contradicts the result obtained by Helpman (1993).

Suggested Citation

  • Bidisha Chakraborty, 2011. "Trade in Intermediate Goods, Endogenous Growth and Intellectual Property Rights," DEGIT Conference Papers c016_051, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c016_051
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    References listed on IDEAS

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    1. Gould, David M. & Gruben, William C., 1996. "The role of intellectual property rights in economic growth," Journal of Development Economics, Elsevier, vol. 48(2), pages 323-350, March.
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    3. Schneider, Patricia Higino, 2005. "International trade, economic growth and intellectual property rights: A panel data study of developed and developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 529-547, December.
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    5. Mondal, Debasis & Gupta, Manash Ranjan, 2008. "Innovation, imitation and intellectual property rights: Introducing migration in Helpman's model," Japan and the World Economy, Elsevier, vol. 20(3), pages 369-394, August.
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    More about this item

    Keywords

    North-South trade; Product development; Intellectual property rights; Human Capital; Endogenous growth; Steady state equilibrium;
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