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Globalization, Divergence and Stagnation
CREI; Universitat Pompeu Fabra.
2003 (English)Report (Other academic)
Abstract [en]

In a world where poor countries provide weak protection for intellectual property rights, market integration will systematically shift technical change in favor of rich nations. For this reason, free trade can increase international income differences. At the same time, integration with countries where intellectual property rights are weakly protected can have a large adverse effect on the world growth rate. These results provide a strong rationale for global regulations, critical in a system of interdependent economies for sustaining innovation and reducing income inequality. Supportive empirical evidence is presented.

Place, publisher, year, edition, pages
Stockholm: IIES , 2003. , 39 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University. (Online), ISSN 1653-610X ; 720
Keyword [en]
economic growth, north-south trade, intellectual property rights, cross-country income differences, innovation diversion
National Category
URN: urn:nbn:se:su:diva-42056OAI: diva2:343798
Published in connection with a visit at the IIES.Available from: 2010-08-16 Created: 2010-08-16 Last updated: 2010-08-16

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