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Is there a piracy Kuznets curve?

Author

Listed:
  • Sana El Harbi

    (Université de Sousse)

  • Gilles Grolleau

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Insaf Bekir

    (Université de Sousse)

Abstract

We investigate empirically the relationship between software piracy and GDP per capita by considering non-linear effects. We use a panel data analysis for 100 countries over a period of 15 years. We remedy several previous econometric and methodological shortcomings and show that piracy follows a Kuznets-like curve. Concretely, piracy first increases with the level of GDP per capita, reaches a maximum, and then decreases at higher levels of income. Making people richer can be the best way to decrease piracy over the long-term horizon. Intellectual property rights holders should not aim for a decrease of piracy per se, but rather a decrease of piracy in those circumstances where it is most likely to be substituted by legal sales. Economic growth can generate by itself incentives to curb piracy.

Suggested Citation

  • Sana El Harbi & Gilles Grolleau & Insaf Bekir, 2012. "Is there a piracy Kuznets curve?," Post-Print hal-01994858, HAL.
    • Handle: RePEc:hal:journl:hal-01994858
    DOI: 10.1515/1555-5879.1527
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    References listed on IDEAS

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