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Author:Javorcik, B.S.
Title:The composition of foreign direct investment and protection of intellectual property rights: Evidence from transition economies
Journal:European Economic Review
2004 : FEB, VOL. 48:1, p. 39-62
Index terms:Direct investment
Foreign investment
Transition economies
Eastern Europe
Russia
Freeterms:FDI
Intellectual property rights
Language:eng
Abstract:While existing literature examined the impact of intellectual property protection on the volume of foreign direct investment (FDI), little is known about its effect on the composition of FDI inflows. This paper addresses this question empirically using a unique firm-level data set from Eastern Europe and the former Soviet Union. It finds that weak protection deters foreign investors in technology-intensive sectors that rely heavily on intellectual property rights. In addition, the results indicate that a weak intellectual property regime encourages investors to undertake projects focusing on distribution rather than local production.
SCIMA record nr: 252960
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