Reports
Discussion Papers
No.444 FDI Inflows and Outflows, Intellectual Property Rights, and Productivity Growth
by Sasatra Sudsawasd and Santi Chaisrisawatsuk
February 2014
ABSTRACT
Using
panel
data
of
57
countries
during
the
period
of
1995-2012,
this
study
investigates
the
impact
of
intellectual
property
rights
(IPR)
processes
on
productivity
growth.
The
IPR
processes
are
decomposed
into
three
stages,
innovation
process,
commercialization
process,
and
IPR
protection
process.
Our
results
suggest
that
better
IPR
protection
is
directly
associated
with
productivity
improvement
only
in
developed
economies.
In
addition,
the
contribution
of
IPR
processes
on
growth
through
foreign
direct
investment
(FDI)
appears
to
be
very
limited.
Only
FDI
inflows
in
developed
countries
which
help
to
create
a
better
innovative
capability
lead
to
a
higher
growth.
And
in
connection
with
FDI
outflows,
only
IPR
protection
and
commercialization
processes
are
proven
to
improve
productivity
in
the
case
of
developing
countries,
particularly
when
the
country
acts
as
the
investing
country.
Keywords:
Foreign
direct
investment,
Intellectual
property
rights,
Productivity
growth
JEL
classification:
F23,
O34
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.