Impact of financial market efficiency on intellectual property protection

摘要

This study assesses how financial market efficiency influences the level of intellectual property protection at the country level. Unlike other studies in the area, financial market efficiency is broken down into five indicators, and qualitative comparative analysis is used to investigate how they combine to lead to a strong or weak level of intellectual property protection. Results show that if a country excels in four of the five indicators, it will achieve a strong level of intellectual property protection. However, if a country shows weak performance in just one of the indicators, even if it excels in some of the others, it will be driven to a weak level of intellectual property protection. Thus, for a country to achieve high intellectual property protection, its financial market must be very efficient across most of its dimensions.