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Intellectual Property Rights, FDI , R&D and Economic Growth: A Cross‐country Empirical Analysis
Author(s) -
Liu WenHsien
Publication year - 2016
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12304
Subject(s) - openness to experience , foreign direct investment , economics , human capital , panel data , investment (military) , intellectual property , estimation , developing country , international economics , international trade , monetary economics , macroeconomics , economic growth , econometrics , psychology , social psychology , management , politics , political science , computer science , law , operating system
This paper aims to empirically examine how intellectual property rights ( IPR s) protection, foreign direct investment ( FDI ) and research and development (R&D), along with other possible variables, may affect the economic growth of the host country. Using the panel data of 92 countries during 1970–2007, I conclude from the system generalised method of moments estimation that domestic investment share, FDI , R&D capacity, openness to trade, human capital and IPR s protection all have statistically significant and positive impacts on economic growth. A further investigation of countries at different levels of development suggests two striking findings. First, besides the domestic investment, openness, human capital and IPR s protection, R&D is the key to drive economic growth in the higher‐income countries, while FDI is the engine of growth in both higher‐income and middle‐income countries. Second, a positive and significant impact of IPR s protection on economic growth is found in both higher‐income and lower‐income countries. However, such an impact is not detected in the middle‐income countries.