The composition of foreign direct investment and protection of intellectual property rights : evidence from transition economies
AbstractWhile 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 justthose relying heavily on intellectual property protection.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2786.
Date of creation: 28 Feb 2002
Date of revision:
International Terrorism&Counterterrorism; Economic Theory&Research; Labor Policies; Environmental Economics&Policies; Legal Products; Trade and Regional Integration; International Terrorism&Counterterrorism; Legal Products; Environmental Economics&Policies; Economic Theory&Research;
Other versions of this item:
- Smarzynska Javorcik, Beata, 2004. "The composition of foreign direct investment and protection of intellectual property rights: Evidence from transition economies," European Economic Review, Elsevier, vol. 48(1), pages 39-62, February.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
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