Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109463
Authors: 
Lee, Minsoo
Park, Donghyun
Year of Publication: 
2013
Series/Report no.: 
ADB Economics Working Paper Series 354
Abstract: 
Developing Asian countries are strengthening their intellectual property rights (IPR) regime as they themselves become producers of intellectual property. At the same time, developing Asia has attracted large amounts of foreign direct investment (FDI) and this trend is expected to continue in light of the region's strong growth prospects. In this paper, we explore the relationship between IPR and FDI in developing Asia. To do so, we develop a theoretical model which predicts that stronger IPR protection attracts more FDI in countries with small informal economies - i.e., strong institutions - but not in countries with large informal economies - i.e., weak institutions. Our empirical analysis, based on a threshold effect model, yields some evidence which supports our theoretical model.
Subjects: 
intellectual property rights
foreign direct investment
informal economy
institutions
Asia
JEL: 
F23
O17
O34
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo
Document Type: 
Working Paper

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