Toward an integrated model of software piracy determinants: A cross-national longitudinal study

This study examines the factors that affect a country’s level of software piracy. In addition, we conducted a panel regression to assess the roles of 13 variables on software piracy rates in 77 countries. Since political and regulatory means typically play a direct role in controlling piracy, this study reviews the endogeneity of intellectual property protection to assess its mediatory role. It was found that economic development, trade, individualism, education, country freedom, regulatory protection, and computer penetration all significantly affected the level of software piracy within each country. Economic freedom, power distance, and high-tech export/import only influenced software piracy when mediated by regulatory protection. This paper has implications for the integration of macro and micro factors related to software piracy.