The Impact Of Intellectual Property Rights On FDI Flow

To improve the protection of intellectual property rights is the trend of the world. The number of FTA dominated and participated by China is increasing.Improve the level of protection of intellectual property rights is the inevitable choice of China. In the process of China, Japan and South Korea FTA negotiations, China, South Korea and Japan have big differences in the field of intellectual property rights and investment field and make little progress.Under this background, this article is to study the relationship of China-Japan’s IPR and FDI flow and the relationship of China-South Korea’s IPR and FDI flow. Research is in order to give put forward rational suggestions on FTA. The main content includes:Firstly, to compare China, Japan and South Korea’s IPR situation and find out the characteristic of IPR. By reading the literature and related data, from legislation and the management to study Japan and South Korea’s IPR situation. To study FDI flow’s characteristic from three points, the flow of FDI, location and technological level.Secondly, build a reasonable index of IPR. Teasing other people’s research results and research methods.I improved the protection of intellectual property index, and also calculate the intellectual property rights protection index in Japan and South Korea. This is one point of innovation in this thesis.Thirdly, analyze the relationship between intellectual property rights and FDI in theory and in the empirical.Use the IPR index, bilateral trade volume, China’s exchange rate, China’s GDP of the world GDP, China’s labor wage as explanatory variables related to the construction model, using econometric model for empirical test and the corresponding conclusions.Select Japanese and Chinese data from 1984-2014;Select of China and South Korea 1991-2014 data.This paper argues that for Japan and South Korea, there is a negative relationship between IPR index and FDI flow. In terms of intellectual property rights, narrow the gap between China and Japan will reduce FDI, so do the South Korea. But to improve the protection of intellectual property rights is the trend. I think, therefore, improving the level of protection of intellectual property rights, may not lead to increase of FDI from Japan and South Korea. When improving the protection of intellectual property rights, we should pay attention to the adverse impact of intellectual property. In addition, we should pay attention to attract FDI investing, to high industry and focus on attracting technology and capital intensive FDI inflows.