TRIPs, trade and growth: When comparative advantages break down |
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Authors: | Eduardo Correia de Souza Jorge Chami Batista |
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Affiliation: | aInsper Institute, Rua Quatá 300, Vila Olímpia, 04546-042 São Paulo, SP, Brazil;bInstitute of Economics, Federal University of Rio de Janeiro, Av. Pasteur 250, Urca, 22290-240 Rio de Janeiro, RJ, Brazil |
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Abstract: | In this paper we combine a model of Ricardian comparative advantages as in Dornbusch et al. (1977) with Grossman and Helpman's (1991) quality ladder model and derive the consequences of asymmetric IPRs protection for the pattern of trade and the world rate of growth through innovation. Our analysis differs from that already made by Taylor (1994) in that final goods and research technologies do not go exactly along together, so the impossibility of doing licensing under asymmetric protection will here bring forth an infringement of comparative advantages which we call “the invasion effect”. |
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Keywords: | JEL classification: O31 O33 O34 O41 O47 |
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