Intellectual Property Rights, Globalization and Growth

I present a model that combines the key features of a Schumpeterian growth model without scale effects and a North - South model of trade.All open economies converge to parallel growth paths because of costly technological transfer.I study the e¤ects of intellectual property rights (IPR) regimes and trade policies on the growth rate, as well as on a given country's economic performance.The requirement that trade be balanced neutralizes all potential effects of the tariff policy on the world's growth rate, and on the performance of a single country.By contrast, an improvement of a given country's IPR regime is growth neutral but improves a country's position in the world's productivity rank.These findings are shown te be consistent with observedempirical relationships.