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Intellectual property rights protection and the surge in FDI in China


  • Awokuse, Titus O.
  • Yin, Hong


There is scarcity of empirical studies focusing on the role of intellectual property rights (IPR) in attracting FDI into developing nations, especially large economies with relatively strong threat of imitation. This paper examines the contribution of IPR to the recent surge in China's inward FDI. We consider two alternative measures of IPR and explore the possibility that the effect of IPR protection on FDI may vary by the level of economic development. Using a panel data for 38 countries, the empirical results indicate that the strengthening of IPR protection in China has a positive and significant effect on FDI. The results also show that FDI from Hong Kong and Taiwan behaves differently from the FDI originating from other high-income countries.

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  • Awokuse, Titus O. & Yin, Hong, 2010. "Intellectual property rights protection and the surge in FDI in China," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 217-224, June.
  • Handle: RePEc:eee:jcecon:v:38:y:2010:i:2:p:217-224

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    References listed on IDEAS

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    Cited by:

    1. Zhang, Huiying & Yang, Xiaohui, 2016. "Trade-related aspects of intellectual property rights agreements and the upsurge in foreign direct investment in developing countries," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 91-99.
    2. Xie, Zhuan & Zhang, Xiaobo, 2014. "The patterns of patents in China:," IFPRI discussion papers 1385, International Food Policy Research Institute (IFPRI).
    3. Georgios Batsakis, 2016. "Host Location Knowledge Sourcing And Subsidiary Innovative Performance — Examining The Moderating Role Of Alternative Sources Of Knowledge And Ipr Distance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-28, August.
    4. Antonio Della Malva & Enrico Santarelli, 2016. "Intellectual property rights, distance to the frontier, and R&D: evidence from microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 1-24, April.
    5. Wunsch-Vincent, Sacha & Kashcheeva, Mila & Zhou, Hao, 2015. "International patenting by Chinese residents: Constructing a database of Chinese foreign-oriented patent families," China Economic Review, Elsevier, vol. 36(C), pages 198-219.
    6. Mila Kashcheeva & Sacha Wunsch-Vincent & Hao Zhou, 2014. "International Patenting Strategies of Chinese Residents: an analysis of foreign-oriented patent families," WIPO Economic Research Working Papers 20, World Intellectual Property Organization - Economics and Statistics Division.
    7. 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.
    8. 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.


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