International protection of intellectual property and parallel imports

Abstract

This thesis examines government incentive to protect intellectual property and to allow parallel trade in an open economy. We study two cases of parallel im- ports: parallel imports exist at i) wholesale and ii) retail level. In the game, the governments choose their policies simultaneously and non-cooperatively. We find that regardless of the form of parallel imports, liberalizing parallel imports in the North will lower the incentive of the Southern government but raise that of the Northern government to provide intellectual property protection. Also, we show that to a welfare maximizing government, tightening parallel import is substitutable to strengthening intellectual property rights protection. Keywords: Intellectual property protection, Parallel Imports

Date of Award	3 Oct 2005
Original language	English
Awarding Institution	City University of Hong Kong
Supervisor	Lun Cheung Edwin LAI (Supervisor)