Investigating the Foreign Direct Investment, Intellectual Property Rights and Economic Growth: A Panel Study from Arabic Countries

Abstract

This study examines the impact of intellectual property rights (IPR) protection and FDI inflows on economic growth. The empirical analysis is carried out using a model of simultaneous equations applied to a panel of Arab countries over the period 1970-2011. Empirical results suggest that FDI has responded positively to the level of IPR protection among Arab countries. They indicate that strengthening IPR protection also increases economic growth. FDI inflows negatively affect the growth of total factor productivity. The results of this study can be of great use to policy makers.