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Grupo de Estudos Monetários e Financeiros

Estudos do GEMF, N.º 19 de 2013


Determinants of Worldwide Software Piracy Losses

Nicolas Dias Gomes

Faculdade de Economia, Universidade de Coimbra

Pedro André Cerqueira
GEMF / Faculdade de Economia, Universidade de Coimbra

Luís Alçada Almeida


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.

Piracy Losses, Software Piracy, Copyright, System GMM.

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