Do the intellectual property rights of regional trading arrangements impact foreign direct investment? An empirical examination

Abstract

In this paper, we examine the empirical impact of regional intellectual property rights (IPR) on inward foreign direct investment (FDI) in developed and developing countries. We include multiple measures of IPR content into a structural gravity model for FDI. We find that the presence and amount of regional IPR is positively related to intra-bloc FDI. With respect to the individual provisions and types, we find those relating to TRIPS reaffirmation, National Treatment, Copyrights and Trademarks, Trade Secrets and Knowledge, and Encrypted Broadcast Signals have a positive effect, while those relating to Enforcement and Dispute Resolution, Patents and Designs, and Domain names have a negative impact on FDI.