The Composition of Foreign Direct Investment and Protection of Intellectual Property Rights : Evidence from Transition Economies

• Tác giả: Beata K Smarzynska
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330 Economics
• Thông tin xuất bản: World Bank, Washington, DC, 2013
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 293783
• Chủ đề: 1. ALLIANCES; 2. CAPITAL INFLOWS; 3. COAL; 4. CODES; 5. COMPETITIVENESS

Tóm tắt

While existing literature has examined the impact of intellectual property protection on the volume of foreign direct investment (FDI), little is known about its effect on the composition of FDI inflows. The author addresses this question empirically, using a unique firm-level data set from Eastern Europe and the former Soviet Union. She finds that weak protection deters foreign investors in technology-intensive sectors that rely heavily on intellectual property rights. The results also indicate that a weak intellectual property regime encourages investors to undertake projects focusing on distribution rather than local production. The latter effect is present in all sectors, not just those relying heavily on intellectual property protection.