Research On The Impact Of Host Country Intellectual Property Protection On Japanese OFDI

As an important symbol of a country’s institutional environment,the intensity of intellectual property protection has become an important factor for developed countries to invest in host countries,especially developing countries.Then as a country of frequent foreign direct investment,Japan has not only continuously improved the legislation and law enforcement of intellectual property protection in Japan,but also paid more and more attention to the intellectual property protection of overseas investment countries in recent years.Therefore,it is more significant to discuss the impact of host country’s intellectual property protection on Japan’s foreign direct investment for China to better attract foreign direct investment from Japan.This paper based on studying the theoretical mechanism of the impact of host country’s intellectual property protection on foreign investment in the home country.So we puts forward two research hypothesis,and uses the panel data of 31 countries from 2007 to 2020 to establish a spatial Dobbin model,and explores the direct impact and spatial spillover impact of host country’s intellectual property protection intensity on Japan’s OFDI through the empirical method of spatial measurement.In the measurement process,the panel tool variable method is used to eliminate its endogenous problems,and an economic weight matrix is constructed,and whether there is spatial correlation is judged by Moran index test.The empirical results prove that if a country enhance the standard of intellectual property protection,it’s effective t0 attract more foreign direct investment from Japan;At the same time,the improvement of the host country’s intellectual property protection intensity will also have a positive spatial spillover effect on neighboring countries and regions to attract Japanese foreign direct investment,that is,the improvement of the host country’s intellectual property protection intensity will bring a demonstration effect to neighboring countries and regions,prompting them to absorb more Japanese foreign direct investment.In the part of robustness test,the explanatory variables and the explained variables are truncated by 1% and 5%,and random effect the fixed effect and are tested.Our regression results found the results are still significant.In the part of heterogeneity analysis,this paper divided the 31 countries into two groups:one is developed countries and the other is developing countries.The regression results proved that both developed countries and developing countries can attract foreign investment,and the enhancement of intellectual property protection intensity in developed countries will significantly promote neighboring countries and areas to get more foreign direct investment,but the improvement of intellectual property protection intensity in developing countries has no significant effect on neighboring countries to attract foreign direct investment.Based on this,host countries,especially developing countries,should further promote the implementation of intellectual property strategy and optimize their own business environment,which will not only attract more foreign direct investment,but also radiate to neighboring countries and regions and promote them to attract foreign direct investment.