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Does institutional reform of intellectual property rights lead to more inbound FDI? Evidence from Latin America and the Caribbean

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  • Khoury, Theodore A.
  • Peng, Mike W.

Abstract

Leveraging a 14-year panel of 18 Latin American and Caribbean countries, we advance the institution-based view in international business research by focusing on how institutional reform of intellectual property rights (IPRs) matters in developing countries. We propose how the adoption timing of an international treaty, the Paris Convention on Industrial Property Rights, leads to more inbound foreign direct investment (FDI). Further, we propose how time spent with this IPR reform interacts with the host country's innovation base to affect inbound FDI. Our findings indicate that more reform time is negatively associated with inbound FDI, but FDI increases for more reform time within countries with substantial domestic innovation bases.

Suggested Citation

  • Khoury, Theodore A. & Peng, Mike W., 2011. "Does institutional reform of intellectual property rights lead to more inbound FDI? Evidence from Latin America and the Caribbean," Journal of World Business, Elsevier, vol. 46(3), pages 337-345, July.
  • Handle: RePEc:eee:worbus:v:46:y:2011:i:3:p:337-345
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    Cited by:

    1. Sun, Sunny Li & Peng, Mike W. & Lee, Ruby P. & Tan, Weiqiang, 2015. "Institutional open access at home and outward internationalization," Journal of World Business, Elsevier, vol. 50(1), pages 234-246.
    2. White, George O. & Boddewyn, Jean J. & Galang, Roberto Martin N., 2015. "Legal system contingencies as determinants of political tie intensity by wholly owned foreign subsidiaries: Insights from the Philippines," Journal of World Business, Elsevier, vol. 50(2), pages 342-356.
    3. Julien Gooris & Carine Peeters, 2014. "Fragmenting global business processes: A protection for proprietary information," Working Papers 2014-12, CEPII research center.
    4. Iftekhar Hasan & Fahad Khalil & Xian Sun, 2017. "The Impacts of Intellectual Property Rights Protection on Cross-Border M&As," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-35, September.
    5. Driffield, Nigel & Mickiewicz, Tomasz & Temouri, Yama, 2016. "Ownership control of foreign affiliates: A property rights theory perspective," Journal of World Business, Elsevier, vol. 51(6), pages 965-976.
    6. Kechagia, Polyxeni & Metaxas, Theodore, 2016. "FDI in Latin America: The case of Peru," MPRA Paper 72399, University Library of Munich, Germany.
    7. Deephouse, David L. & Newburry, William & Soleimani, Abrahim, 2016. "The effects of institutional development and national culture on cross-national differences in corporate reputation," Journal of World Business, Elsevier, vol. 51(3), pages 463-473.
    8. Meyer, Klaus E. & Thein, Htwe Htwe, 2014. "Business under adverse home country institutions: The case of international sanctions against Myanmar," Journal of World Business, Elsevier, vol. 49(1), pages 156-171.
    9. Jiatao Li & Zhenzhen Xie, 2016. "Governance Structure and the Creation and Protection of Technological Competencies: International R&D Joint Ventures in China," Management International Review, Springer, vol. 56(1), pages 123-148, February.
    10. Yang, Zhenzeng, 2013. "Intellectual Property Rights Protection, Complexity and Multinational Firms," MPRA Paper 46734, University Library of Munich, Germany.
    11. Papageorgiadis, Nikolaos & Cross, Adam R. & Alexiou, Constantinos, 2014. "International patent systems strength 1998–2011," Journal of World Business, Elsevier, vol. 49(4), pages 586-597.
    12. Yang, Deli & Sonmez, Mahmut, 2013. "Integration and divergence of patent systems across national and international institutions," Journal of World Business, Elsevier, vol. 48(4), pages 527-538.
    13. repec:pal:jintbs:v:48:y:2017:i:7:d:10.1057_s41267-016-0061-9 is not listed on IDEAS
    14. repec:eee:iburev:v:27:y:2018:i:1:p:139-148 is not listed on IDEAS

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