This paper studies the determinants of software piracy losses along four
major macroeconomic dimensions: Labor force, Technological, Educational and
Access to Information using a large dataset available from 1994 to 2010,
comprising 109 countries.
The results show that, regarding the labor dimension, employment in services has
a deterrent effect while labor force with higher education and youth
unemployment have positive effects on piracy losses. As for the technological
dimension, more patents by residents have a positive effect while the effect of
R&D is negative. In terms of the Educational dimension the results obtained show
that more spending on education increase the piracy losses but, at the same
time, more schooling years have the opposite effect. Finally, regarding the
Access to Information, it seems that access to Internet diminishes the losses
while the share of Internet broadband subscriptions has no effect.
JEL Classification: C12, C23, C51, L86.
Keywords: Piracy Losses, Software Piracy, Copyright, System GMM.