The Mechanism And Empirical Study Of The Impact Of Intellectual Property Protection In Home Country On China's Foreign Direct Investment

Starting from the opportunities and challenges faced by China's foreign direct investment in the context of globalization,this paper proposes how to establish a new advantage of China's foreign direct investment through the development of intellectual property protection in the context of China's economic transformation and upgrading.The whole research has not only important academic value,but also has important practical significance.In order to explore the mechanism of intellectual property protection in the home country affecting the foreign direct investment of Chinese enterprises,this paper first builds a benchmark model of the internalization of corporate innovation behavior based on Helpman et al.(2004),and then introduces the degree of intellectual property protection in the home country into the model analyzes its impact on the foreign direct investment behavior of enterprises.The study found that intellectual property protection in the home country can promote foreign direct investment activities by reducing the external financing costs of enterprises and improving the innovation ability of enterprises.This paper considers the differences in actual law enforcement levels in various provinces,constructs an IPR protection index at the provincial level,and conducts empirical tests from a macroscopic and microscopic perspectives.Based on the data of China's provincial direct foreign investment and the list of "Overseas Investment Enterprises(Institutions)" provided by the Ministry of Commerce of China,this paper empirically examines the impact of home country intellectual property protection on China's foreign direct investment.From a macro perspective,the development of intellectual property protection has significantly increased the scale of foreign direct investment in the region,especially for the foreign direct investment in the eastern region;from the micro level,the intellectual property protection in the home country can increase the probability of foreign direct investment.In the robustness test,this paper examines the intellectual property protection and foreign direct investment of the home country by distinguishing the investment destination,the type of the industry and the purpose of foreign investment.Through the mediation effect model,this paper also verifies that the intellectual property protection in the home country promotes the foreign direct investment behavior of enterprises by promoting enterprise innovation and alleviating corporate financing pressure.Finally,based on the empirical conclusions,this paper proposes how to improve China's foreign direct investment through the protection of intellectual property in the home country.