The Composition of Foreign Direct Investment and Protection of Intellectual Property Rights : Evidence from Transition Economies

While 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 just those relying heavily on intellectual property protection.

Bibliographic Details

Main Author:	Smarzynska, Beata K.
Language:	English en_US
Published:	World Bank, Washington, DC 2002-02
Subjects:	ALLIANCES, CAPITAL INFLOWS, COAL, CODES, COMPETITIVENESS, CONSUMERS, COPYRIGHT, CORRUPTION, DESTINATION COUNTRY, ECONOMIC ACTIVITY, ECONOMIC ANALYSIS, ECONOMIC BEHAVIOR, ECONOMIC DEVELOPMENT, ECONOMIES OF SCALE, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPIRICAL STUDIES, EXPORTS, FOREIGN AFFILIATES, FOREIGN CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTOR, FOREIGN INVESTORS, FOREIGN PRESENCE, GDP, GDP PER CAPITA, GLOBAL ECONOMY, GLOBAL TRADING, GOVERNING INVESTMENT, IMPORTS, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTERNATIONAL INVESTMENT, INTERNATIONAL POLICY, INTERNATIONAL TRADE, INVESTMENT DECISION, KNOWLEDGE ACCUMULATION, LABOR COSTS, LAW FIRMS, LAWS, LEGAL RULES, LEGISLATION, LOCAL CONSUMERS, LOCAL FIRMS, LOCAL PRODUCERS, LOCAL PRODUCTION, MARKET SIZE, OIL, PATENTS, PRIVATE SECTOR, PRIVATIZATION, PRODUCERS, PRODUCTION PROCESS, PRODUCTION TECHNOLOGY, PROPERTY RIGHTS, PUBLIC COMPANIES, PUBLISHERS, PURCHASING POWER, STANDARD VARIABLES, STATEMENTS, TAX RATES, TAXATION, TECHNOLOGICAL CAPABILITIES, TECHNOLOGY TRANSFER, TRADE FLOWS, TRADE RESTRICTIONS, TRADING SYSTEM, TRANSACTION COSTS, TRANSITION ECONOMIES, TRANSITION PERIOD, TRANSPARENCY,
Online Access:	http://documents.worldbank.org/curated/en/2002/02/1703260/composition-foreign-direct-investment-protection-intellectual-property-rights-evidence-transition-economies https://hdl.handle.net/10986/15634
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