This study examines how the stronger patent protection put on brand name drugs, resulting from policies such as TRIPS, impacts income inequality in developing countries. We use panel data from 1996 to 2014 for 16 developing countries. We use two separate models to analyze our relationship of interest. In our first model, we find that adherence to TRIPS causes increased income inequality in developing countries. The second model was found to not be significant. Based on our data, we can infer that the likely cause of this increase is lower skilled workers earning reduced wages, relative to their pre-TRIPS wages, increasing the income gap.
Nicolson, Xander, "Does TRIPS Enlarge the Income Gap in Developing Countries? An Analysis of the Pharmaceutical Industry" (2018). Senior Independent Study Theses. Paper 8120.
TRIPS, IPR, Economics, International Trade, Heckscher-Ohlin model
Bachelor of Arts
Senior Independent Study Thesis
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