Trading Cultural Goods in the Era of Digital Piracy

Abstract

The issue of digital piracy is a hot button among governments around the world. Piracy rates may significantly affect both internal and international trade of cultural goods. This paper aims to empirically assess the effect of digital piracy on bilateral trade in cultural goods. We focus on trade in music, films and media. Analysing an 11-year panel of 25 countries, we find that piracy does affect bilateral trade, but to varying extents.trade; trade; cultural goods; piracy; spatial filtering; network autocorrelation