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Review of World Economics

, Volume 140, Issue 3, pp 393–414 | Cite as

Intellectual property rights and foreign direct investment: A disaggregated analysis

  • Peter NunnenkampEmail author
  • Julius Spatz
Articles

Abstract

This paper aims at overcoming several shortcomings of previous empirical studies on the relationship between IPR protection and FDI. First of all, we use sectorally disaggregated FDI data for a large sample of host countries. Second, we address the proposition that stronger IPR protection raises not only the quantity but also the quality of FDI. Third, we check to which extent the relationship between IPR protection and FDI is affected by applying alternative measures of IPR protection. Our empirical findings support the hypothesis that the threat of an unauthorized use of intellectual-property-related assets and, thus, FDI depends on industry as well as host-country characteristics. Furthermore, stronger IPR protection may help induce high-quality FDI. JEL no. F21, F23

Keywords

Intellectual property rights ownership advantages imitative capacity quantity and quality of FDI industry characteristics host-country characteristics 

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Copyright information

© Giel Institute for World Economics 2004

Authors and Affiliations

  1. 1.Kiel Institute for World EconomicsKiel

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