|Title:||Software piracy and income inequality|
|Citation:||Andrés, A. R. (2006). Software piracy and income inequality. Applied Economics Letters, 13(2), 101-105.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|About the Data|
|Data Description:||This study uses data on income inequality from the World Income Inequality Database (WIID, 2000). It also uses data on software piracy published by the International Planning Research Corporation (IPRC) for the Business Software Alliance (BSA) and Software Information Industry Association (SIIA) (IPRC, 2003).|
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||Yes|
|Government or policy study?:||No|
|Time Period(s) of Collection:|
This paper investigates the extent to which income inequality influences national piracy rates across a sample of 34 countries. Economic inequality seems to have a negative significant effect on national rates of piracy. Consistent with previous studies, we also find that judicial efficiency affects piracy rates. Additionally, research results show that income and education are not important determinants of piracy rates.
Main Results of the Study
This study shows that income inequality appears to have a negative and significant effect on piracy rates, and hence supporting Husted’s result (2000). The regression results also reveal that the efficiency of the judicial system is an important factor when explaining cross-national variations in piracy rates. No significant association was found between income, education and piracy rates. Overall, the results are in line with previous empirical research.
Policy Implications as Stated By Author
The authors find that higher levels of judicial efficiency are associated with lower software piracy rates. Only the law variable seems to impact on piracy rates. The coefficient on rule of law is negative and statistically significant. This finding suggests that the efficiency of the legal system might act a deterrent factor of piracy behaviour, hence supporting previous findings (Holm, 2003).