Intellectual property rights and economic growth within the framework of institutional economics

Knowledge is an important factor in the production process and its economic value has increased significantly with the effect of the rapid globalization experienced today. Since the world is moving towards the knowledge-based economy, intellectual property within the scope of intangible rights has become a significant part of the global society and technological progress. Therefore, countries have given weight to both the protection of intellectual property rights and the establishment of legal infrastructure. From this point of view, the dissertation has examined the relationship between economic growth and intellectual property rights both in Turkey and the BRICS countries for the 2007-2017 period. To begin, the dependence between horizontal cross-sections (countries) has been examined with the corrected LMadj (Adjusted Lagrange Multiplier) test. Then, the stationarity of the series has also been examined by Bai and Carrion-i-Silvestre (2009) test which is one of the second generation unit root tests and it was found that the first differences of the GDP and Intellectual Property Rights Index series were stable. Later, the LM-based test, which was developed by Westerlund and Edgerton (2008) and it tests the existence of co-integration relationship between the series, determined that there is a panel co-integration relationship between GDP and IPRI. To conclude, the series move together in the long term. Also, the short and long term relationship between GDP and IPRI has been estimated separately by constructing two models. The first model takes into account structural breaks using the PMG (Pooled Mean Group) method and the latter does not take into account structural breaks. According to the results obtained from the models, both in Turkey and the BRICS countries, while an increase in the IPRI in the long run positively affects economic growth, it has been demonstrated that it has no effect in the short term.