David M. Gould

The role of intellectual property rights in economic growth

Abstract By influencing the incentives to innovate, intellectual property rights protection may affect economic growth in important ways. An important question for many countries is whether stricter enforcement of intellectual property is a good strategy for economic growth. This paper examines the role of intellectual property rights in economic growth, utilizing cross-country data on patent protection, trade regime, and country-specific characteristics. The evidence suggests that intellectual property protection is a significant determinant of economic growth. These effects appear to be slightly stronger in relatively open economies and are robust to both the measure of openness used and to other alternative model specifications.

Human capital, trade, and economic growth

Human Capital, Trade, and Economic Growth. — Human capital, because of its special role in innovative activity and technological progress, has formed the bedrock of the new theories of endogenous growth. However, it not only serves as an engine of growth but also as a productive input along with labor and physical capital. In this study, the authors find evidence of the importance of both roles of human capital. They also find that the relationship between growth and the external effects of human capital vary according to trade regime. When literacy rates are relatively high, open economies grow about 0.65 to 1.75 percentage points more than closed economies.ZusammenfassungHumankapital, Handel und Wirtschaftswachstum. — Wegen seiner besonderen Rolle bei Innovationen und technologischem Fortschritt bildet das Humankapital die Grundlage der neuen Theorien über endogenes Wachstum. Es dient aber nicht nur als Antriebskraft für das Wachstum, sondern ist auch ein produktiver Input wie Arbeit und physisches Kapital. In dieser Untersuchung finden die Autoren Anhaltspunkte für die Bedeutung der beiden Rollen des Humankapitals. Sie stellen außerdem fest, daß die Beziehung zwischen Wachstum und den externen Effekten des Humankapitals mit der Art des Außenhandelsregimes variiert. Bei relativ hohem Alphabetisierungsgrad wachsen offene Volkswirtschaften um 0,65 bis 1,75 Prozentpunkte schneller als geschlossene Volkswirtschaften.

Exchange Rate Volatility, Investment, and Growth: Some New Evidence

It is often argued that exchange rate volatility deters foreign trade and investment. But is exchange rate volatility associated with higher or lower rates of growth? What is the best policy to achieve maximum growth?

The political economy of retaliation, liberalization and trade wars☆

Abstract We examine the dynamic process behind protection, retaliation and trade wars. Consistent with empirical evidence on the development of trade policies, we model policy decisions as an outcome of political contests within two trading nations, rather than as an outcome of a strategic game between two governments. Uncertainty about the incidence and success of retaliation yields a dynamic political equilibrium in which one country imposes a tariff that increases gradually over time. Eventually, the cost of the tariff to the other countrys exporting interests induces retaliation. We show that depending on the characteristics of the markets in the two countries, retaliation may encourage liberalization or may cause a trade war.

Exchange rates, capital flows and monetary policy in a changing world economy

Preface. I. Exchange Rates and Monetary Policy. II. Optimal Exchange Rate Policy for Stabilizing Inflation in Developing Countries. Appendix: Exchange Rate Policy and Macroeconomic Stability. III. Exchange Rates and Economic Growth. Appendix: Description of the Data. IV. Speculative Attacks. Appendix: Foreign Exchange Hedging with Synthetic Options and the Interest Rate Defense of a Fixed-Exchange-Rate Regime Peter M. Garber, Michael G. Spencer. V. Exchange Rates, Capital Flows, Monetary Policy and a Changing World Economy. VI. International Capital Flows: Direct vs. Portfolio Investment. Appendix A: A Survey of Academic Literature on Controls over International Capital Transactions Michael P. Dooley. Appendix B: Are Recent Capital Inflows to Developing Countries a Vote For or Against Economic Policy Reforms? Michael P. Dooley. VII. Panel Discussion: Central Bank Coordination in the Midst of Exchange Rate Instability.

Building Trade Barriers and Knocking Them Down

This paper examines the dynamic behavior of trade protection and liberalization. Consistent with evidence on the development of trade policies, policy decisions are modeled as the outcome of a political contest between import-competing interests and exporters. Uncertainty about the success of political contests yields a dynamic equilibrium in which tariffs gradually increase over time. Eventually, increasing tariffs reduce profits in the exporting sector to such a degree that exporters enter the political arena and lobby actively against protection. Depending on the market characteristics, a political contest may generate a liberalization or a move toward autarky. Copyright 1997 by Blackwell Publishing Ltd.

The Role of the Dollar as an International Currency

What role should the United States play in a world where financial and goods markets are increasingly integrated? Is U.S. monetary policy becoming less effective?

International Capital Flows: Direct vs. Portfolio Investment

The growth of international capital flows, especially portfolio investment, has provided an unprecedented pool of funds for developing countries. Moreover, the speed at which funds can travel between countries is much more rapid than ever before. Are international capital flows a blessing or a curse?

Exchange Rates and Monetary Policy

The enormous volatility of floating exchange rates has led to a call for limits on exchange rate fluctuations. An increasing number of countries have begun to question the benefits of floating exchange rates. Can central banks limit exchange rate fluctuations, and are there benefits from doing so?

Central Bank Coordination in the Midst of Exchange Rate Instability

Should the world return to a more coordinated monetary and exchange rate environment? What are the dangers or benefits of a return to a Bretton Woods type of system?