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Innovation, Imitation, and Intellectual Property Rights with International Capital Movement
Author(s) -
Okawa Yoshifumi
Publication year - 2010
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2010.00912.x
Subject(s) - imitation , intellectual property , economics , movement (music) , capital (architecture) , property rights , law and economics , neoclassical economics , international trade , microeconomics , political science , law , psychology , geography , social psychology , philosophy , archaeology , aesthetics
This paper extends the established Helpman (1993) model by introducing international capital movement, and obtains new results concerning the welfare implications of tightening intellectual property rights (IPR) in the South. First, if separated capital markets in the North and the South are integrated, enforcement of IPR would have more desirable welfare effects in both regions. Second, when international capital movement is allowed, the North always gains from the tightening of IPR if the imitation rate is sufficiently high. This implies that the North's demand on the South to tighten IPR becomes stronger as the integration of international capital markets progresses.