The impact of intellectual property rights on foreign direct investment

Abstract While foreign direct investment (FDI) has been discussed extensively, little research has been undertaken on the nature and direction of the relationship between intellectual property rights protection and FDI. The author uses empirical findings based on a study of 27 countries to support the propositions that the level of intellectual property rights protection is a strong determinant of inward investment and that intellectual property rights have a greater impact on inward investment than many economic policy variables among certain country groups.

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