Implications of Intellectual Property Rights and Socio-economic Factors on Growth of Manufacturing Sector in Selected Cross Economies: An Empirical Assessment

Abstract

Numerous studies assessed the influence of socioeconomics, IPRs and government policy factors on economic growth across economies. However, in emerging economies manufacturing sector contributes large share in GDP. While, the growth of manufacturing sector depends upon socio-economic factors, science & technological change related variables and IPRs related activities. In this regards, limited studies investigate the influence of these factors on manufacturing sector across country using empirical models. Therefore, the present study creates Intellectual Property Awareness Index (IPAI), Science & Technological Development Index (STDI), and Socio-economic Development Index (SEDI) (i.e. integration of SDI and EDI) using composite Z-score technique for selected 41 developed and developing economies. These estimations identify the performance of these economies in intellectual property rights, science & technology, and socio-economic development compared to each other. It compiles country-wise panel data during 2005-2013 for aforementioned investigations. Thereupon, it assesses the association of these indicators with manufacturing value added using linear, non-linear and log-linear regression models. Empirical results of the study imply that all indicators have a positive and statistically significant association with manufacturing value added. Results of the study facilitate several policy suggestions to increase the progress of manufacturing sector in developed and developing economies.