Distributive Politics and Economic Growth

C.E.P.R. Discussion Papers, CEPR Discussion Papers 01/1991;
Source: RePEc


This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distortions and income inequality. Finally, in an open economy, achieving the globally optimal level of protection requires an international coordination (rather than the harmonization) of IPR protection.

19 Reads
  • Source
    • "In this context, the Downsian paradigm predicts that whenever the median income lies below the mean income, the median voter will be able to influence the tax system and the expenditure programs in such a way as to redistribute resources in her own favor, but even in this case recent empirical analyses have started to disconfirm this explanation. Empirical studies of the link between income (re)distribution and economic growth (Persson and Tabellini 1994; Alesina and Rodrik 1994; Perotti 1996; Milanovic 2000) based on a median voter approach have generally pointed out that, in the long run, more unequal distributions of income are persistently associated with poorer, not richer median voters. Some evidence is found that the median voter is able to obtain comparatively larger amounts of redistribution, but these processes do not reduce income inequality; rather they depress investments and economic growth. "
    [Show abstract] [Hide abstract]
    ABSTRACT: This presidential address assesses the crisis of the Downsian model of political competition in light of the mounting evidence on policy divergence and evaluates the possibility that the new theories of politicians’ quality and political selection provide an alternative theoretical conceptualization of political competition. Based on a critical review of the literature and on the author’s works on content analysis of policy speeches, income redistribution, politicians’ quality, and political legislation cycles, this address concludes that multidimensional Downsian models of political competition are adequate to explain policy divergence and points out the serious theoretical and empirical problems that models of political selection have to solve.
    Public Choice 09/2013; 156(3-4). DOI:10.1007/s11127-012-9920-5 · 0.91 Impact Factor
  • Source
    • "low Alesina and Rodrik (1994) "
    [Show abstract] [Hide abstract]
    ABSTRACT: This article analyses the impact of the electoral calendar on the composition of tax revenue (direct versus indirect taxes). It thus represents an extension of traditional political budget-cycle analyses assessing the impact of elections on overall revenue. Panel data from 56 developing countries over the 1980-2006 period reveals a clear pattern of electorally-related policy interventions. Taking the potential endogeneity of election timing into account, we find robust evidence of lower indirect taxes being applied by incumbent governments in the period just prior to an election. Indirect tax revenue in election years is estimated to be 0.3 GDP percentage points lower than in other years, corresponding to a fall of about 3.4% of the average figure in the sample countries, while there is no such relationship with direct tax revenue.
    Public Choice 07/2013; 156(1-2). DOI:10.2139/ssrn.2209215 · 0.91 Impact Factor
  • Source
    • "They argue that, for instance, Taiwan, Hong Kong, Singapore and Korea, the Four Asian Tigers, have been successful in achieving high and persistent rates of economic growth since early 1960s; because of their free-market, outward-oriented economies. Thus, the emergence of endogenous growth theories put emphasis on the benefits resulting from a dynamic export trade in a framework that will lead to increasing returns to scale and diffusion of technological and managerial effects from abroad to the other sectors of the economy (Alisana, & Rodrick, 1999; Feder, 1983). The theoretical arguments are further supported by some empirical studies as seen in the next section. "
    [Show abstract] [Hide abstract]
    ABSTRACT: The paper examines the relationship among exports, Foreign Direct Investment (FDI) and economic growth in Nigeria over the period 1960-2009. The time series properties of the variables are examined using the Phillips-Peron technique due to its robustness to a wide variety of serial correlation and heteroscedasticity. The results of Johansen cointegration test indicate existence of at least six cointegrating vectors. The error correction coefficient shows that deviation from long run RGDP path is corrected by about 48% over the following year. As a way of correcting for multicollinearity, we re-estimate the models of the static regression using a Fully Modified Least Squares Method (FMOLS) and error correction coefficient. We find out that the removal of Degree of openness (DOP) variable may be detrimental even though the percentage deviation from equilibrium does not seem to change. The paper therefore concludes by shedding more light on the relevance of the degree of openness and this can facilitate more FDI inflows capable of accelerating the growth process. The paper thus recommends immediate focus on more reforms/policies that will create enabling environment for FDI inflows and export growth thereby reducing the growth and development barriers in Nigeria.
    03/2012; 4(4). DOI:10.5539/ijef.v4n4p95
Show more


19 Reads
Available from