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Patent rights protection and foreign direct investment in Asian countries

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  • Hsu, Judy
  • Tiao, Yu-En

Abstract

Patent rights (PRs) protection has acquired an important role in the new knowledge-based global economy, and it has been an essential policy issue for a number of years. Many previous papers have examined how PRs protection affects international trade, but there is lack of study on the relationship between PRs protection and foreign direct investment (FDI). According to the active FDI activities in Asia, this paper conducts a research from 1985 to 2010 to completely investigate the relationship between PRs protection and inward FDI in eleven main Asian countries by adopting Ordinary Least Square (OLS) and System Generalized Method of Moments (System GMM). The empirical results indicate that strengthening PRs protection in host countries can increase Asian countries' FDI inflows. Moreover, different country characteristics might make distinctive influences on inward FDI.

Suggested Citation

  • Hsu, Judy & Tiao, Yu-En, 2015. "Patent rights protection and foreign direct investment in Asian countries," Economic Modelling, Elsevier, vol. 44(C), pages 1-6.
    • Handle: RePEc:eee:ecmode:v:44:y:2015:i:c:p:1-6
    DOI: 10.1016/j.econmod.2014.08.018
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    References listed on IDEAS

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    Cited by:

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    2. Ichraf Ouechtati, 2020. "Institutions and foreign direct investment: A Panel VAR approach," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 9(2), pages 55-70, December.
    3. Yu Huan & Md. Qamruzzaman, 2022. "Innovation-Led FDI Sustainability: Clarifying the Nexus between Financial Innovation, Technological Innovation, Environmental Innovation, and FDI in the BRIC Nations," Sustainability, MDPI, vol. 14(23), pages 1-26, November.
    4. Götz, Marta & Jankowska, Barbara, 2022. "When reality diverges from expectations… Industry 4.0, FDI and post-transition economy," Technology in Society, Elsevier, vol. 68(C).
    5. Neves, Pedro Cunha & Afonso, Oscar & Silva, Diana & Sochirca, Elena, 2021. "The link between intellectual property rights, innovation, and growth: A meta-analysis," Economic Modelling, Elsevier, vol. 97(C), pages 196-209.
    6. Kayalvizhi, P.N. & Thenmozhi, M., 2018. "Does quality of innovation, culture and governance drive FDI?: Evidence from emerging markets," Emerging Markets Review, Elsevier, vol. 34(C), pages 175-191.
    7. Ronald Ebenezer Essel, 2023. "Foreign direct investment, technological spillover, and total factor productivity growth in Ghana," SN Business & Economics, Springer, vol. 3(8), pages 1-34, August.
    8. Boying Li & Chun‐Ping Chang & Mingbo Zheng, 2021. "Assessment of innovation and foreign direct investment: An investigation of OECD countries," Pacific Economic Review, Wiley Blackwell, vol. 26(3), pages 392-403, August.
    9. Huiying Zhang & Xiaohui Yang, 2016. "Intellectual Property Rights and Export Sophistication," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-19, October.
    10. Nguyen, Anh T.N. & Haug, Alfred A. & Owen, P. Dorian & Genç, Murat, 2020. "What drives bilateral foreign direct investment among Asian economies?," Economic Modelling, Elsevier, vol. 93(C), pages 125-141.
    11. Fusen Zhao & Yuhao Zhao & Silin Li, 2024. "How does intellectual property system affect technology entrepreneurship: evidence from Chinese prefecture‐level cities," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 38(1), pages 110-130, May.

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    Keywords

    PRs protection; FDI;

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