Software piracy, inequality and the poor: evidence from Africa
Abstract
Purpose
Poverty and inequality undoubtedly remain substantial challenges to economic and human developments amid growing emphasis on intellectual property rights (IPRs) (with recent advances in information and communication technology (ICTs)) and good governance. In the first empirical study on the incidence of piracy on inequality in Africa, the purpose of this paper is to examine how a plethora of factors (IPRs laws, education and 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 and 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 and 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 income-equality.
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
Acknowledgements
JEL Classifications — F42, K42, O34, O15, O55
This author is highly indebted to the editor and referees for useful comments.
Citation
Asongu, S. (2014), "Software piracy, inequality and the poor: evidence from Africa", Journal of Economic Studies, Vol. 41 No. 4, pp. 526-553. https://doi.org/10.1108/JES-10-2012-0141
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited