DOES FOREIGN INTELLECTUAL PROPERTY RIGHTS PROTECTION AFFECT US EXPORTS AND FDI?
Version of Record online: 23 AUG 2013
© 2013 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd
Bulletin of Economic Research
Volume 67, Issue 3, pages 256–264, July 2015
How to Cite
Awokuse, T. O. and Gu, W. G. (2015), DOES FOREIGN INTELLECTUAL PROPERTY RIGHTS PROTECTION AFFECT US EXPORTS AND FDI?. Bulletin of Economic Research, 67: 256–264. doi: 10.1111/boer.12012
- Issue online: 8 JUL 2015
- Version of Record online: 23 AUG 2013
- intellectual property rights;
Several previous studies have examined the relationship between intellectual property rights (IPR) protection, exports, and FDI independently. However, very few prior analyses jointly examined the linkages between IPR protection and multiple modes of international transactions. This paper investigates how foreign IPR protection affects how US firms jointly serve overseas markets through exports and FDI. Using both static pooled regressions and a dynamic panel GMM estimator on a panel data of 53 countries, we examine whether stronger foreign IPR protection stimulates US international transactions. The empirical results suggest that foreign countries that strengthen their IPR protection, especially those with strong imitative ability, can attract more international transactions from the USA.