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Establishment of China’s Intellectual Property Rights Regime and Potential Impact of strengthening Intellectual Property Rights on Trade and FDI in China

Zhang, Xuan (2008) EKHR01 20081
Department of Economic History
Abstract (Swedish)
This paper builds upon previous research on the relationship between IPR, trade and FDI based on data worldwide. As the result varies cross countries, this paper will focus on China to analyze the improvement of China’s IPR protection and analyze the potential impact of strengthening IPR protection on the development of trade and FDI using data from WTO, WIPO, MOFCOM and so on. Unlike developed countries in which IPR protection emerged with internal incentives such as introducing foreign technology or protecting and encouraging domestic innovation, the establishment of IPR regime in China has been greatly pushed by external pressures from the United States. Internal incentives to protect IPR have been accumulated along with the... (More)
This paper builds upon previous research on the relationship between IPR, trade and FDI based on data worldwide. As the result varies cross countries, this paper will focus on China to analyze the improvement of China’s IPR protection and analyze the potential impact of strengthening IPR protection on the development of trade and FDI using data from WTO, WIPO, MOFCOM and so on. Unlike developed countries in which IPR protection emerged with internal incentives such as introducing foreign technology or protecting and encouraging domestic innovation, the establishment of IPR regime in China has been greatly pushed by external pressures from the United States. Internal incentives to protect IPR have been accumulated along with the encouragement of innovation by government policy and emergence of local stakeholders. Statistics and facts analyzed in this paper will show that China’s IPR protection has been gradually strengthened during last three decades and import of IPR-sensitive goods, export of high-technology goods, inward FDI and outward FDI all increased dramatically along with the strengthening of IPR protection. However, the analysis also shows that the impact of IPR protection on China’s trade and FDI flows has been greatly offset by China’s economic reform which includes both domestic reforms and China’s participation in globalization. Outward FDI in technology-related sector increased sharply after China’s access to TRIPS and the export of high-technology goods especially ICT goods increased greatly in the last ten years which indicates that the strengthening of IPR protection may stimulate FDI outflows on technology-related sectors and export of high-technology goods by enhancing domestic innovation. (Less)
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author
Zhang, Xuan
supervisor
organization
course
EKHR01 20081
year
type
H1 - Master's Degree (One Year)
subject
keywords
FDI, trade, China, IPR
language
English
id
1857090
date added to LUP
2011-03-18 14:08:22
date last changed
2011-03-18 14:08:22
@misc{1857090,
  abstract     = {This paper builds upon previous research on the relationship between IPR, trade and FDI based on data worldwide. As the result varies cross countries, this paper will focus on China to analyze the improvement of China’s IPR protection and analyze the potential impact of strengthening IPR protection on the development of trade and FDI using data from WTO, WIPO, MOFCOM and so on. Unlike developed countries in which IPR protection emerged with internal incentives such as introducing foreign technology or protecting and encouraging domestic innovation, the establishment of IPR regime in China has been greatly pushed by external pressures from the United States. Internal incentives to protect IPR have been accumulated along with the encouragement of innovation by government policy and emergence of local stakeholders. Statistics and facts analyzed in this paper will show that China’s IPR protection has been gradually strengthened during last three decades and import of IPR-sensitive goods, export of high-technology goods, inward FDI and outward FDI all increased dramatically along with the strengthening of IPR protection. However, the analysis also shows that the impact of IPR protection on China’s trade and FDI flows has been greatly offset by China’s economic reform which includes both domestic reforms and China’s participation in globalization. Outward FDI in technology-related sector increased sharply after China’s access to TRIPS and the export of high-technology goods especially ICT goods increased greatly in the last ten years which indicates that the strengthening of IPR protection may stimulate FDI outflows on technology-related sectors and export of high-technology goods by enhancing domestic innovation.},
  author       = {Zhang, Xuan},
  keyword      = {FDI,trade,China,IPR},
  language     = {eng},
  note         = {Student Paper},
  title        = {Establishment of China’s Intellectual Property Rights Regime and Potential Impact of strengthening Intellectual Property Rights on Trade and FDI in China},
  year         = {2008},
}