IDEAS home Printed from https://ideas.repec.org/a/wsi/jicepx/v05y2014i03ns1793993314400092.html
   My bibliography  Save this article

Foreign Direct Investment, Intellectual Property Rights, and Productivity Growth

Author

Listed:
  • Sasatra Sudsawasd

    (School of Development Economics, National Institute of Development Administration (NIDA), 118 Seri Thai Road, Bangkapi, Bangkok 10240, Thailand)

  • Santi Chaisrisawatsuk

    (School of Development Economics, National Institute of Development Administration (NIDA), 118 Seri Thai Road, Bangkapi, Bangkok 10240, Thailand)

Abstract

Using panel data for 57 countries over the period of 1995–2012, this paper investigates the impact of intellectual property rights (IPR) processes on productivity growth. The IPR processes are decomposed into three stages — innovation process, commercialization process, and protection process. The paper finds that better IPR protection is directly associated with productivity improvements only in developed economies. In addition, the contribution of IPR processes on growth through foreign direct investment (FDI) appears to be quite limited. Only inward FDI in developed countries which creates better innovative capability leads to higher growth. In connection with outward FDI, only the increase in IPR protection and commercialization are proven to improve productivity in the case of developing countries, particularly when the country acts as the investing country.

Suggested Citation

  • Sasatra Sudsawasd & Santi Chaisrisawatsuk, 2014. "Foreign Direct Investment, Intellectual Property Rights, and Productivity Growth," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-19.
    • Handle: RePEc:wsi:jicepx:v:05:y:2014:i:03:n:s1793993314400092
    DOI: 10.1142/S1793993314400092
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1793993314400092
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1793993314400092?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mila Kashcheeva, 2013. "The role of foreign direct investment in the relation between intellectual property rights and growth," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 699-720, July.
    2. Abdur Chowdhury & George Mavrotas, 2005. "FDI and Growth: a Causal Relationship," WIDER Working Paper Series RP2005-25, World Institute for Development Economic Research (UNU-WIDER).
    3. Ha-Joon Chang, 2001. "Intellectual Property Rights and Economic Development: Historical lessons and emerging issues," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 2(2), pages 287-309.
    4. Chin, J.C. & Grossman, G.M., 1988. "Intellectual Property Rigths And North-South Trade," Papers 143, Princeton, Woodrow Wilson School - Public and International Affairs.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zoran Aralica & Nebojša Stojčić, 2015. "Regional Patterns of Deindustrialization and Prospects for Reindustrialization in South and Central East European Countries," wiiw Balkan Observatory Working Papers 118, The Vienna Institute for International Economic Studies, wiiw.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gaoju Yang & Yilu Zhang & Xiao Yu, 2020. "Intellectual property rights and the upgrading of the global value chain status," Pacific Economic Review, Wiley Blackwell, vol. 25(2), pages 185-204, May.
    2. Raza, Werner G., 2021. "COVID-19 and the failure of pharmaceutical innovation for the global South: The example of "neglected diseases" and emerging infectious diseases," Briefing Papers 32a, Austrian Foundation for Development Research (ÖFSE).
    3. Jeong‐Eon Kim & Harvey E. Lapan, 2008. "Heterogeneity of southern countries and southern intellectual property rights policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(3), pages 894-925, August.
    4. Ozturk, Ilhan & Kalyoncu, Huseyin, 2007. "Foreign Direct Investment and Growth: An Empirical Investigation based on Cross-Country Comparison," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(1), pages 75-81.
    5. Elif Bascavusoglu & Maria Pluvia Zuniga, 2005. "The effects of intellectual property protection on international knowledge contracting," Cahiers de la Maison des Sciences Economiques bla05009, Université Panthéon-Sorbonne (Paris 1).
    6. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2023. "Intellectual property rights protection and trade: An empirical analysis," World Development, Elsevier, vol. 162(C).
    7. Lanjouw, J.O., 1997. "The Introduction of Pharmaceutical Product Patents in India: "Heartless Exploitation of the Poor and Suffering"?," Papers 775, Yale - Economic Growth Center.
    8. Nemlioglu, Ilayda & Mallick, Sushanta, 2020. "Does multilateral lending aid capital accumulation? Role of intellectual capital and institutional quality," Journal of International Money and Finance, Elsevier, vol. 108(C).
    9. Akinlo Taiwo & Simon-Oke O. Olayemi, 2015. "Re-examine foreign direct investment and economic growth: Panel co-integration and causality tests for sub-Saharan African countries," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 18(1), pages 73-86, March.
    10. Leahy, Dermot & Naghavi, Alireza, 2006. "Intellectual Property Rights and Entry into a Foreign Market: FDI vs Joint Ventures," CEPR Discussion Papers 5672, C.E.P.R. Discussion Papers.
    11. Alireza Naghavi, 2007. "Strategic Intellectual Property Rights Policy and North-South Technology Transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(1), pages 55-78, April.
    12. Andreea TRIMBITAS & Andrei VECERDEA, 2013. "Foreign Direct Investment Drivers in Romania," Expert Journal of Finance, Sprint Investify, vol. 1(1), pages 33-42, December.
    13. Anusua Datta & Hamid Mohtadi, 2006. "Endogenous Imitation and Technology Absorption in a Model of North-South Trade," International Economic Journal, Taylor & Francis Journals, vol. 20(4), pages 431-459.
    14. Gene M. Grossman & Edwin L.-C. Lai, 2004. "International Protection of Intellectual Property," American Economic Review, American Economic Association, vol. 94(5), pages 1635-1653, December.
    15. Popov, V., 2011. "Do We Need to Protect Intellectual Property Rights?," Journal of the New Economic Association, New Economic Association, issue 11, pages 107-126.
    16. Denise Eby Konan & Sumner J. La Croix & James A. Roumasset & Jeffery Heinrich, 1995. "Intellectual Property Rights in the Asian‐Pacific Region: problems, patterns, and policy," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 9(2), pages 13-35, November.
    17. Stiglitz, Joseph E., 2015. "Leaders and followers: Perspectives on the Nordic model and the economics of innovation," Journal of Public Economics, Elsevier, vol. 127(C), pages 3-16.
    18. Hudson, John & Minea, Alexandru, 2013. "Innovation, Intellectual Property Rights, and Economic Development: A Unified Empirical Investigation," World Development, Elsevier, vol. 46(C), pages 66-78.
    19. Kosacoff, Bernardo & López, Andrés & Pedrazzoli, Mara, 2008. "Trade, investment and fragmentation of the global market: is Latin America lagging behind?," Estudios y Perspectivas – Oficina de la CEPAL en Buenos Aires 39, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    20. Sumner J. La Croix & Denise Eby Konan, 2002. "Intellectual Property Rights in China: The Changing Political Economy of Chinese–American Interests," The World Economy, Wiley Blackwell, vol. 25(6), pages 759-788, June.

    More about this item

    Keywords

    Foreign direct investment; intellectual property rights; productivity growth; F23; O34;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jicepx:v:05:y:2014:i:03:n:s1793993314400092. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jicep/jicep.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.