This thesis mainly studies the relationship between intellectual
property rights protection and recorded music sales by use of 26 OECD countries
panel data from 2000 to 2007. Following Png and Wang (2006), the production
equation of recorded music is developed. Meanwhile, the author introduces other
independent variables such as per capita GDP, employment rate and R&D,
population and economic openness. The econometric methods consist of two way
fixed effects method, Arellano-Bond dynamic panel-data estimation and dynamic
panel-data estimation, one-step difference GMM (generalized method of
moments) by use of Stata 10.0. The findings are as followings: Intellectual
property rights (IPRs) protection exerts positive effect on recorded music sales,
and the influencing coefficient is at the range of 0.815 to 0.915. Meanwhile,
economic openness also has positive influence. The studying results suggest that
IPRs protection can reinforce the sale of recorded music, and it is very urgent to
enhance IPRs protection