The Impact Of Intellectual Property Protection On FDI

The impact of intellectual property protection on foreign direct investment(FDI)is becoming more and more important with in the open economy.How to use FDI is an important strategy for the economic development of developing countries.This paper discusses the impact of intellectual property protection on FDI under the framework of traditional international production eclectic theory(OLI),and then uses empirical analysis to test the theoretical analysis.In this paper,we use the panel data of 40 countries from2003 to 2012 to select the indicators of intellectual property protection in WEF's "Global Competitiveness Report" report as the practical indicator of the intellectual property protection of the core variables,and join the five control variables(OPEN),labor cost(AVS),infrastructure(TCAR),and urbanization level(URB)are the main factors of the host country.The empirical analysis is divided into two levels: first,from the overall level,do not divide the specific industries of FDI,and the sample is divided into the world,developed countries and developing countries,respectively,three groups of samples were regression,followed by the industry level,respectively,State and the developing countries of the ten specific industries regression analysis and comparison.The results of the empirical analysis show that there is a significant positive impact on the protection of FDI in the three levels of the world,developed countries and developing countries at the global level.At the industry level,the specific industries have different results: Electricity,gas and water production and supply,wholesale and retail trade,finance,real estate,leasing and business services,compared with developed countries and developing countries,intellectual property rights to FDI at 1%,5% of varying degrees.The intellectual property rights of developed countries are significant at the level of 1% for FDI in agriculture,forestry,forestry,animal husbandry and fishery industries.Developing countries' intellectual property rights are significantly positive for FDI at 1% level.In mining,manufacturing,construction,accommodation and catering industries,as well as transportation,warehousing and postal services,the impact of intellectual property on FDI are all positive.Finally,based on the empirical results,this paper puts forward the corresponding policy suggestions on how to attract foreign direct investment in developing countries.