Impact Of Intellectual Property Right Protection Upon Inward Fdi Of Shenzhen

Inward Foreign Direct Investment (IFDI) is one of the introduction ways offoreign capital and it is playing an important role on the economic developmentof countries or regions. Foreign direct investment (FDI) is an important carrier ofthe output of foreign capital and technology elements, the increase of FDIpromote rapid economic growth by raising domestic production capacity,increasing employment, expanding foreign trade and so on. Academia think thatintellectual property protection strength is a most important one the influencefactors of inward foreign direct investment. In this paper, the author to shenzhenas the research object, the key research shenzhen intellectual property protectionon the influence of inward foreign direct investment.Firstly, this paper reviews the theory of The Eclectic Theory of InternationalProduction (OLI). According to the deep comparison, analysis and summary ondifferent points of view of intellectual property protection and inward foreigndirect investment of relationship in the academic circle, and according to themechanism of action and the results, the author make an different classifying.Then, on this basis, combining previous research situation, the author establishedan empirical study model in this paper about Shenzhen inward foreign directinvestment, intellectual property protection strength, labor cost, exchange ratefluctuation and import and export trade. And use the econometrics method tomake statistical analysis. Using stationarity test, granger causality test and othereconometric methods to make research on the relationship and influence betweenindependent variable and dependent variable.The following conclusions were drawn by this paper through the research:Explanatory variable chosen by this model in Shenzhen city have significantinfluence on inward foreign direct investment (IFDI), but not with the samedirection.Shenzhen intellectual property protection strength is negatively relatedon the inward foreign direct investment.Shenzhen labor cost and its inwardforeign direct investment are positively related, and it can be explained by theconcept of actual average wage level.The higher degree of opening, the moreability to attract inward foreign direct investment; RMB foreign revaluationdoesn’t make any weaken impact on the trend of the inward foreign directinvestment.