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Intellectual Property Rights, Foreign Direct Investment and Economic Growth

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  • Palaniaandy, Ayappan
  • Chin, Lee

Abstract

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.

Suggested Citation

  • Palaniaandy, Ayappan & Chin, Lee, 2018. "Intellectual Property Rights, Foreign Direct Investment and Economic Growth," MPRA Paper 118780, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118780
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    Cited by:

    1. Chen Kong San & Lee Chin, 2023. "Impact of Public Debt on Economic Growth: A Quantile Regression Approach," South Asian Journal of Macroeconomics and Public Finance, , vol. 12(2), pages 250-278, December.

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    More about this item

    Keywords

    Economic growth; foreign direct investment; industrial design; intellectual property rights; patent;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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