Intellectual property rights and development: the spatial relationships

Abstract

Purpose

The purpose of this paper is to provide evidence that the U‐shaped relationship between intellectual property rights (IPRs) and per capita gross domestic product (GDP) observed in the past literature using a panel of data is not a consequence of longitudinal forces, as has been previously postulated, but instead a consequence of cross‐sectional influences.

Design/methodology/approach

Differences in the longitudinal and cross‐sectional relationship between IPRs and per capita GDP are analyzed through a variety of methods, including pooled regression analysis that isolates the regional differences that are critical in making an accurate longitudinal analysis from the panel data.

Findings

Analyzing the country data reveals that a longitudinal U‐shaped relationship is counterfactual, as countries generally do not weaken their IPRs once they are in place, barring a regime change or other alteration in their political economy. The significant U‐shape link between IPRs and per capita GDP empirically observed in preliminary analysis of the panel data is instead a result of cross‐sectional influences.

Originality/value

Making the distinction between the cross‐sectional and longitudinal relationship between IPRs and per capita GDP provides a more accurate insight about how IPRs change in a country as it develops.

Citation

Briggs, K. (2010), "Intellectual property rights and development: the spatial relationships", Journal of Economic Studies, Vol. 37 No. 5, pp. 525-543. https://doi.org/10.1108/01443581011075451