Intellectual Property Rights Protection and FDI: Some Correlational Evidence

Shoirahon Odilova, Gu Xiaomin

Abstract


In this study, we contribute to the existing literature on the FDI by exploring the effect of intellectual property rights (IPR) protection on economic growth. Using data for 120 countries for the period of 2010-2015 we find that IPR index is non-linearly associated with the FDI. For example, in countries with low levels of IPR protection, increase in IPR is associated with more FDI. However, in countries with established IPR protection further strengthening of IPR discourages investment. This model explains nearly 17% of cross-country variations in FDI.


Keywords


FDI; IPR; IPR protection; Economic Growth.

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