@workingpaper{Asongu2012bg,
title = {Software piracy, inequality and the poor: evidence from Africa},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/035},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Software-piracy-inequality-and-the-poor.pdf},
year = {2012},
date = {2012-09-01},
abstract = {Purpose – Poverty and inequality undoubtedly remain substantial challenges to economic and
human developments amid growing emphasis on IPRs (with recent advances in ICTs) and
good governance. In the first empirical study on the incidence of piracy on inequality in
Africa, we examine how a plethora of factors (IPRs laws, education & ICTs and government
quality) are instrumental in the piracy-inequality nexus.
Design/methodology/approach – Two-Stage-Least Squares estimation approaches are
applied in which piracy is instrumented with IPRs regimes (treaties), education & ICTs and
government quality dynamics.
Findings – The main finding suggests that, software piracy is good for the poor as it has a
positive income-redistributive effect; consistent with economic and cultural considerations
from recent literature. ICTs & education (dissemination of knowledge) are instrumental in this
positive redistributive effect, while good governance mitigates inequality beyond the piracy
channel.
Practical implications – As a policy implication, in the adoption IPRs, sampled countries
should take account of the role less stringent IPRs regimes play on income-redistribution
through software piracy. Collateral benefits include among others, the cheap dissemination of
knowledge through ICTs which African countries badly need in their quest to become
‘knowledge economies’. A caveat however is that, too much piracy may decrease incentives
to innovate. Hence, the need to adopt tighter IPRs regimes in tandem with increasing incomeequality.
Originality/value – It is the first empirical assessment of the incidence of piracy on
inequality in Africa: a continent with stubbornly high poverty and inequality rates.},
keywords = {Inequality; Piracy; Intellectual property rights; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}