On the trade,growth, and welfare effects of intellectual property rights protection |
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Authors: | Yuki Saito |
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Institution: | 1. Graduate School of Economics, Osaka University, 1-7 Machikaneyama, Toyonaka, Osaka 560-0043, Japan.
Institute of Social and Economic Research, Osaka University, 6-1 Mihogaoka, Ibaraki, Osaka 567-0047, Japan;2. E-mail: yuki.saito.r@gmail.com. |
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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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Keywords: | F43 O31 O34 |
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