Foreign Direct Investment Inflows and Intellectual Property Rights: Empirical Evidence from Different Income Groups (original) (raw)
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Intellectual Property Rights, Investment Climate and FDI in Developing Countries
International Business Research, 2010
What is the impact of intellectual property rights (IPR) protection on foreign direct investment (FDI)? Has the coming into effect of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) had any impact on FDI inflows in developing countries? This paper answers these questions by the use of panel data for a cross – section of 75 developing countries over a period of 19 years (1985 – 2003). The results of the study indicate that: 1) strengthening IPR has a positive effect on FDI; 2) the impact of patent protection on FDI after the TRIPS agreement is far and above that of the pre – TRIPS era; 3) the degree of openness, growth rate of the economy and investment are also key determinants of FDI. The findings of the study suggest that strengthening IPR is only one component of the many factors needed to maximize the potential of developing countries to attract FDI.
Intellectual property rights, foreign direct investment and economic growth
2018
The objective of this study is to investigate the moderating role of IPR on the impact of FDI inflows on economic growth. By include an interaction term for FDI and IPR in each model, Two-step System GMM was applied for three proxies of IPR, namely patent, trademark and industrial design on a panel of 103 countries from 1998 to 2013. The result shows that interaction between FDI-trademark and FDI-design obtained a positive and significant result towards economic growth. It can be concluded that countries with high IPR’s could enhance their economic growth via higher inflows of FDI. A strict enforcement of IPR is vital in ensuring positive impact on economic growth as investors preferably place the FDI in a safe and secure nation that promises enforcement of law against imitation.
Intellectual property rights protection and foreign direct investment: a study of BRICS countries
World Review of Entrepreneurship, Management and Sustainable Development, 2018
Economic implications of intellectual property rights protection have always been a matter of debate among policy makers. It is assumed that FDI inflow in any nation depends upon the level of protection given to the creation of intellectual capital. Studies conducted on developed nations built strong link between IPR protection and foreign direct investment. The debate centred on whether these results can be reciprocated for developing countries. This study adds new dimensions to the existing literature by analysing the impact of IPR protection on FDI inflow in BRICS nations with the help of country specific data for the period of 2000-2015. FDI inflow is considered as dependent variable and charges of IP use, patent granted, patent filed by residents, non-residents and R&D expenditure as the percentage of GDP as an independent variable and proxy to IPR protection. The empirical results suggest that charges of IP use, total patent granted and patent filed by non-residents affects FDI inflow. Further study concludes that stronger IPR protection in developing countries will infuse foreign direct investment in the technology oriented knowledge sectors where probability of loss due to imitation is high.
International Journal of Technology Management, 2000
This paper provides an overview of theoretical mechanisms by which the strength of an economy's intellectual property rights system could affect inward flows of foreign direct investment and technology licensing. It also reviews briefly the available econometric and survey evidence on these questions and lists new estimates suggesting that the international distribution of US investment in manufacturing is sensitive to variations in patent rights across countries. Intellectual property rights appear to be an important component of broader economic and regulatory policies in terms of attracting direct investment. However, concerns persist that stronger rights will reduce competition and access to information in developing economies as the new global system is phased in. Thus, the paper also discusses issues of competition policy that arise in the context of intellectual property protection.
The Impacts of Intellectual Property Rights Protection on International Trade
2013
"Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) drew a tremendous attention since it was incorporated as one of the core agreements constituting the World Trade Organization (WTO). Positions are mainly divided into two mainstreams: some hold that expansion of IPR is an obstacle to growth and development, while on the other hand, some believe that IPR is beneficial to both developed and developing countries. Therefore, the focus of this study is to answer the following empirical questions: How does IPR protection affect trade? Does IPR protection have the same impact on trade across countries, or are there systematic differences conditioned on the stage of development? This study analyzes the impacts of IPR protection on international trade. We examined the effects of IPR protection index, Gross Domestic Product, population, tariffs, inflation, infrastructure, trade growth, and Foreign Direct Investment on trade volume. Our specifications also use interaction models between IPR protection index and stages of development of countries, which are classified into three different classes: factor-driven, efficiency-driven, and innovation-driven countries. The results show that IPR protection has basically negative effects on trade volume, especially for factor-driven countries. Nevertheless, the negative effects of IPR will be diminishing as its development level higher. This demonstrates that there are different impacts of IPR protection on trade depending on economic development level. For factor-driven economies, higher IPR protection may hinder its capacity to develop their economies, but for efficiency-driven and innovation-driven economies, IPR protection would have less impact on trade by itself so these countries should look at other factors in order to consider their adequate level of IPR protection."
Jinnah Business Review, 2019
The current study explores the impact of intellectual property right, financial development and institutional quality on foreign direct investment. Data of patent index were used as a proxy of intellectual property right. Financial development index and institutional quality variables were taken from ICRG for the period of 1980- 2016, by applying pooled OLS, fixed test. Sample of 123 developing countries data set were used. The results are consistent with theory of OLI presented by Dunning 1979. The results explain more than 70 percent of FDI significance level is explained by these proxies. The only paper that identifies Patent right index is by Park (2008) that took patent index from 1960-2005. Furthermore, work is under taken where the patent right variables are taken as independent variables. On the contrary previous studies have empirically examined the effect of patent proxy effect on the creativity, innovations and the dissemination of the technology transfer. This study diff...
The main purpose of this paper is to examine the role of the protection of intellectual property rights (IPR) in Arab countries to encourage developed countries to transfer their technologies to Arab countries and its impact on economic growth using panel data of seven Arab countries in terms of patent protection, foreign direct investment (FDI) and the specific characteristics of each country for the period 1970–2011. The results of our simultaneous equations model suggest that FDI affects negatively growth in total factor productivity (TFP). They show that IPR protection stimulates TFP growth by attracting FDI and technology flows