RELATIONSHIP BETWEEN IPRAND FDI

Relationship between Intellectual Property Rights and Foreign Direct Investment and its effects on Host Countries



ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University (Bardhan, 2001, 467).

Signed __________________ Date _________________

ABSTRACT

Existing literature supports the notion that there is a direct relation between Intellectual property rights (IPR) and foreign direct investment (FDI), this study will further pursue this concept and gather evidence which can be used in order to understand the relationship between IPR and FDI. Theory indicates that the welfare implication of the IPR is directly affected by the extent of FDI within the host country. Previous researches indicated that promoting stricter IPR led to increased development .This study examines whether the impact of IPR differs depending on the level of FDI.

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION7

Background of Study7

Problem Statement9

Purpose of Study12

Significance of study13

Research Aims and Objectives14

Research Questions15

CHAPTER 2: LITERATURE REVIEW16

Overview of Intellectual Property Rights16

Foreign Direct Investment20

Relationship between Foreign Direct Investment and Intellectual Property Rights24

Theoretical Framework - Relationship of FDI and IPR25

Effect of IPR and FDI on Host Countries26

Chapter Summary27

CHAPTER 3: METHODOLOGY29

Research Approach29

Research Paradigm30

Research Strategy31

Qualitative Research Method32

Hypotheses32

Data Collection33

Interviews34

Sample Selection34

Data Analysis35

Research Ethics36

Informed Consent36

Validity and Reliability of the Findings37

Limitations of the Research Method38

CHAPTER 4: DISCUSSION AND ANALYSIS39

The relationship between IPR and FDI39

IPR encourages FDI41

IPR and economic development43

Positive impact of IPR on Economic development44

Negative impact of IPR on economic growth45

Why stronger IPR can hurt growth46

Research Question 147

Research Question 249

Research Question 350

Methods of Foreign Direct Investment51

Research Question 451

Foreign Direct Investment Globally51

Foreign Direct Investment of United States51

China's Foreign Direct Investment52

India and Foreign Direct Investment52

Developing Countries and Foreign Direct Investment53

International Investment Agreement53

CHAPTER 5: CONCLUSION56

Recommendations59

REFERENCES62

CHAPTER 1: INTRODUCTION

Background of Study

The most profound component of the economic globalization is the fact the multinational corporations are now striving to utilize their intellectual property rights (IPR henceforth) beyond their national borders. Foreign direct investment (FDI) is seen as a main form of international capital transfer over the last decade, it has also grown in a tremendous speed and size which has tripled globally between 1980s and 1990s. In recent years, multinational corporations (MNCs) believe that FDI is a major expansion for business. Additionally, the traditional theoretical analyses suggest looking for differences in terms of the scale and scope of MNCs as a means of seeking competitive advantage, e.g. better technology, management capability, consumer allegiance, greater complementarities in productions and etc. (Froot, 1993). Moreover, as the technology advance hugely every day, cross border management and foreign asset control are made easier, so it raises the possibility and the chance of successful FDI.

According to Chryssochoidis, Millar & Clegg, 1997 there are five different types of foreign direct investment ...