IDEAS home Printed from
   My bibliography  Save this article

The role of foreign direct investment in the relation between intellectual property rights and growth


  • Mila Kashcheeva


The theory predicts that the welfare implications of intellectual property rights (IPR) reform are ambiguous, and depend on the extent of foreign direct investment (FDI) in the IPR-reforming country. However, previous research finds that stricter IPR increase development, especially among multinational firms in technology-intensive industries. I examine whether the impact of IPR on growth is different depending on a level of FDI, because previous research either looked at a few episodes of IPR reforms, or a specific source or a recipient of FDI, thus potentially overlooking the global effect. Using dynamic panel data techniques and a sample of 103 countries over 1970-2009, I find that although FDI and IPR have positive effects on growth for most of the countries, stronger IPR mitigates the growth effect of FDI for developing countries. Moreover, at the highest levels of FDI, lax IPR increase growth. The effect works through capital accumulation and TFP improvements. Copyright 2013 Oxford University Press 2013 All rights reserved, Oxford University Press.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:oxecpp:v:65:y:2013:i:3:p:699-720

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

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


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

    Cited by:

    1. Cook, Thomas R. & Liu, Amy H., 2016. "Using Linguistic Networks to Explain Strength of Intellectual Property Rights," World Development, Elsevier, vol. 87(C), pages 128-138.

    More about this item


    Access and download statistics


    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:oup:oxecpp:v:65:y:2013:i:3:p:699-720. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.