YesWe investigate the relationship between intellectual property rights (IPR) and innovation, for a panel of 48 countries between 1998-2011. Prior empirical studies mainly focus on strength of patent regulations largely ignoring the enforcement of such laws in practice. We employ a new index that accounts for the enforcement related component of the patent system and the Ginarte and Park (1997) index of patent regulatory strength. We thus include two crucial elements of a national patent system, the de jure position relating to book law and IPR regulations, and the de facto position relating to IPR enforcement. We consider nonlinearities between IPR and innovation, and we find that both nonlinearities and the enforcement aspect are significant in explaining the relationship between innovation and IPR systems.This paper has been published and is behind a paywall and cannot be made available online without the publisher's content.The full-text of this article will be released for public view at the end of the publisher embargo on 16 Aug 2017

NOThe relationship between exports and economic growth has been analysed by a number of recent empirical studies. This paper re-examines the sources of growth for the period 1971-2001 for India. It builds upon Feder's (1983) model to investigate empirically the relationship between export growth and GDP growth (the export led growth hypothesis), using recent data from the Reserve Bank of India, and by focusing on GDP growth and GDP growth net of exports. We investigate the following hypotheses: (i) whether exports, imports and GDP are cointegrated using the Johansen approach and Breitung's nonparametric cointegration test; (ii) whether export growth Granger causes GDP growth; (iii) and whether export growth Granger causes investment. Finally, a VAR is constructed and impulse response functions (IRFs) are employed to investigate the effects of macroeconomic shocks

This study conducts an investigation into the sustainability of the Indian current account using data for 1950 onwards. A necessary condition for current account sustainability is that exports and imports are cointegrated. After testing for unit roots that allow for a structural break, we employ parametric tests for cointegration: based on Johansen ( 1995 Johansen, S . 1995. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models, Oxford: Oxford University Press. [Crossref] [Google Scholar] ) and Saikkonen and Lütkepohl ( 2000a Saikkonen, P and Lütkepohl, H . 2000a. Testing for the cointegrating rank of a VAR process with an intercept. Econometric Theory, 16: 373–406. [Crossref], [Web of Science ®] [Google Scholar] , b Saikkonen, P and Lütkepohl, H . 2000b. Testing for the cointegrating rank of a VAR process with structural shifts. Journal of Business and Economic Statistics, 18: 451–64. [Taylor & Francis Online], [Web of Science ®] [Google Scholar] , c Saikkonen, P and Lütkepohl, H . 2000c. Trend adjustment prior to testing for the cointegrating rank of a vector autoregressive process. Journal of Time Series Analysis, 21: 435–56. [Crossref], [Web of Science ®] [Google Scholar] ) as well as the nonparametric procedure proposed by Breitung ( 2002 Breitung, J . 2002. Nonparametric tests for unit roots and cointegration. Journal of Econometrics, 108: 343–63. [Crossref], [Web of Science ®] [Google Scholar] ) and Breitung and Taylor ( 2003 Breitung, J and Taylor, AMR . 2003. Corrigendum to ‘nonparametric tests for unit roots and cointegration’. Journal of Econometrics, 117: 401–4. [Google Scholar] ) that does not assume linearity. By employing these procedures recursively, two distinct regimes are identified characterized by whether or not imports and exports are cointegrated. The regime of noncointegration runs until the late 1990s and the second regime of cointegration is present after that. This latter regime coincides with the liberalization of the Indian economy.