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The composition of foreign direct investment and protection of intellectual property rights : evidence from transition economies, Volume 1

Author:	Smarzynska, Beata K.;	Collection Title:	Policy, Research working paper series ; no. WPS 2786
Date Stored:	2002/03/08	Document Date:	2002/02/28
Document Type:	Policy Research Working Paper	Language:	English
Major Sector:	(Historic)Economic Policy	Report Number:	WPS2786
Sub Sectors:	Trade	SubTopics:	Environmental Economics & Policies; International Terrorism & Counterterrorism; Economic Theory & Research; Legal Products; Labor Policies; Trade and Regional Integration
Volume No:	1

Summary: While existing literature has 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. The author addresses this question empirically, using a unique firm-level data set from Eastern Europe and the former Soviet Union. She finds that weak protection deters foreign investors in technology-intensive sectors that rely heavily on intellectual property rights. The results also indicate that a weak intellectual property regime encourages investors to undertake projects focusing on distribution rather than local production. The latter effect is present in all sectors, not just those relying heavily on intellectual property protection.


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File Type		Description	File Size (mb)

	PDF 32 pages	Official version*	2.24 (approx.)
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File Type		Description	File Size (mb)

	PDF 27 pages	WPS2786	0.09

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