The Impact Of Intellectual Property Protection On China's FDI Inflow

The development of the Internet era brings countries closer economic ties and strengthens their geographical advantages in the world through FDI.China has attracted a large amount of foreign direct investment with its huge market,cheap labor force and preferential investment policies.At the same time,China's imperfect IPR protection system has discouraged some countries from investing directly in China.Many scholars believe that several important factors affecting FDI inflow in China are level of intellectual property protection,market size,trade openness,etc.,of which the most important one is level of intellectual property protection.Weakened in recent years,China's cheap labor advantage,low cost for foreign direct investment fell,at the same time,the knowledge assets of rapid accumulation and for China to attract foreign direct investment to open another door,in order to make China's FDI inflows of quantity and quality of steady growth,based on knowledge-based assets to seek and market under the two kinds of investment motive,study the effect of intellectual property protection of foreign direct investment(FDI)is of great significance.The research of this paper firstly gives some necessary introduction to the research background of this paper and further explains the specific significance of the research.Then,I will briefly explain the main research content and framework of this paper,as well as the possible innovations and deficiencies of this paper.Then,the domestic and foreign research literature was classified and analyzed.In the literature research,the influencing factors of foreign direct investment were first sorted out,followed by the relationship between intellectual property protection and FDI,the relationship between knowledge-based assets and FDI,and the relationship between market size and FDI.In the review of the previous literature,the impact on foreign direct investment was analyzed more deeply,and the selection of variables and research direction in this paper were laid a foundation.In the third chapter,the status of foreign direct investment and related factors are analyzed.As the largest developing country with a huge market size,China has encouraged independent innovation in recent years,and its accumulation of knowledge-based assets ranks among the best in the world.Therefore,China has become the first choice for direct investment of many countries.This chapter mainly introduces the current status of foreign direct investment in China from the perspective of investment scale,investment mode and the country of origin of investment,and analyzes the impact on the growth of foreign direct investment in China from the perspectives of intellectual property protection,market size and intellectual asset accumulation.The next chapter is the theoretical analysis of the impact of intellectual property protection on FDI inflow in China.In this paper,the model based on the Chin and Grossman,(1988),and Zigic(2000),the basic idea of "cost effective" innovation model and Lai(1998),Glass and Saggi(2002),and Naghavi inspired(2005),knowledge approach is introduced into the model,the technology spillovers through the establishment of innovation model of cost savings,discussion on fdi technology spillover way for knowledge,the host country intellectual property protection of the economic effect.Based on the equilibrium analysis of the model,the influence of the IP protection level of host country on FDI is emphatically discussed.2.China's weak level of intellectual property protection is conducive to the FDI inflow of intellectual assets seeking.On the basis of theoretical analysis,chapter five makes an empirical analysis of the impact of intellectual property protection on FDI inflow in China.Are used in many abroad study GP index to measure the intellectual property protection level,but GP index mainly involves the legislative factor,and the modern rule of law system of our country,time is not long,only consider the legislative level is not enough to measure the level of intellectual property rights protection in China,so this article of intellectual property protection level reference Jiang Yiguo(2017)through two aspects of legislation and law enforcement to quantify.Later,when using the vector autoregressive model to explore the causal relationship between variables,the research of xia yuxiang(2016)was referred to.The specific method is still to test the relevant data of the model,including stationarity test,co-integration test and impulse response test.After the correlation of variables was determined,in order to further determine the influence of independent variables on dependent variables,FDI countries were differentiated according to different investment motives,and several representative national data were selected for regression analysis.Finally,chapter 6 draws conclusions,Suggestions and future prospects based on previous studies.Through the analysis of the above chapters,this chapter by summing up the following conclusions:1,the protection of intellectual property rights in our country,and the size of the market on the market for type of FDI inflows have obvious positive correlation,the stronger the size of the market to a certain extent also compensate for the negative impact of the weak intellectual property protection level,conforms to our country "market for technology" has long been open to the public policy.2.The accumulation of knowledge assets in China has great attraction for FDI inflows sought by knowledge assets.3.There is a significant negative correlation between the level of intellectual property protection in China and FDI inflows of intellectual assets seeking.As the FDI inflows of intellectual assets seeking in China have been increasing in number in recent years and the growth momentum is obvious,it deserves the attention of policy makers.Then,on the basis of these conclusions,this paper puts forward that the current no matter developed countries or developing countries in the world are active in the global scope for direct investment,knowledge reserve assets relatively poor countries tend to be more to the country is rich in knowledge-based assets investment,access to strategic assets,and some of the country due to the knowledge assets have more rich,more inclined to investment to market big countries,the market benefit.In either case,the intellectual property protection of the host country has an indelible impact on foreign direct investment.Policy makers have to consider the factors,weigh the advantages and disadvantages and implement the policy that best suits their national conditions when formulating the ipr protection policy.In addition,China still needs to constantly expand the market scale to drive economic growth with demand and stimulate the continuous inflow of foreign direct investment.Finally,we should pay more attention to the accumulation of knowledge-based assets to enhance China's competitiveness in international competition.