Intellectual Property Rights (IPRs) and Economic Growth in Pakistan

Abstract

The strong protection of Intellectual Property Rights (IPRs) attract more investments and promote economic growth processes in developing countries. This study underlines the level of IPRs enforcement in Pakistan and consequently its implications for economic growth. The study confirms that enforcement at appropriate level of IPRs encourages economic growth in Pakistan. For data stationarity and long-run relationship between IPRs and economic growth Unit Root test and Johansen Cointegration tests are applied. The study uses Times Series data estimation techniques, namely Vector Error Correction Model (VECM) for a period of 1970– 2010. The study concludes with policy recommendations for economic growth in understanding the form and nature of IPRs enforcements in Pakistan. Keywords: Intellectual Property Rights (IPRs), Foreign Direct Investment (FDI), Research and Development, Patents, Human Capital, Invention and Innovation