The role of Patent on Foreign Direct Investment: Evidence in Vietnam

PHAM,, N. T. , & PHAM,, H. T. T. (2020). The role of Patent on Foreign Direct Investment: Evidence in Vietnam. The Journal of Distribution Science, 18(6), 77-82, https://doi.org/https://doi.org/10.15722/jds.18.6.202006.77

copy

Downloaded
Viewed

PDF Download

Abstract

Purpose: In the period of international integration, how is the implementation of intellectual property regulation in developing countries? Do intellectual property rights help attract more Foreign direct investment (FDI)? This study aims to show the effect of intellectual property rights, reflect in the number of patent registered (Patent distribution into two components: Patent_residents and Patent_non-residents) on FDI attraction in Vietnam. Research design, data and methodology: Using Autoregressive distributed lag (ARDL) model for the data collected from 1990 to 2018 with EViews version 9 software. Conclusions: The results indicate that the number of patent protection has a positive effect on FDI in both short term and long term. In particular, only patent registration of foreign individuals and organizations has a significant positive effect on attracting FDI, while that of Vietnamese patents is not statistically significant. From the results of this study, we provide some recommendations to help attract FDI based on raising awareness of intellectual property rights: Increase international cooperation for innovation to learn and encourage patent; Improve the capac ity of inventing as well as the ability to register patents of Vietnamese people; Government agencies are tasked to support a nd review registration procedures; Encouraging patent registration based on the patent.

keywords: Autoregressive distributed lag, ARDL model, Foreign Direct Investment, Distribution of the patent

Reference

Alexiou, C., Nellis, J., & Papageorgiadis, N. (2016). The effect of patent enforcement strength and FDI on economic growth. Multinational Business Review, 24(4), 334–353.https://doi.org/10.1108/MBR-07-2016-0024

Cantwell, J. A. (1989). Technological innovation and multinational corporations. Oxford, England: Basil Blackwell.

Cantwell, J. A. (1995). The globalization of technology: What remains of the product life cycle model? Cambridge Journal of Economics, 19, 155–174.

Dunning, J. H., Kim, Z. K., & Lee, C.-I. (2007). Restructuring the regional distribution of FDI: The case of Japanese and US FDI. Japan and the World Economy, 19(1), 26–47.https://doi.org/10.1016/j.japwor.2005.07.003

Gui-Diby, S. L. (2014). Impact of foreign direct investments on economic growth in Africa: Evidence from three decades of panel data analyses. Research in economics, 68(3), 248-256.

Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics (5th ed). New York, NY: McGraw Hill.

Ho, T. N., Bui, A. T., Nguyen, V. D., Dao, T. K., & Nguyen, N. D.(2020). Analyzing the impact of FDI and urbanization on CO2 emission in Vietnam. International Journal of Business and Globalisation, 12, 1–19.

Johansen, S. (1995). Likelihood-based inference in cointegrated vector autoregressive models. Oxford, England: Oxford University Press.

Kogut, B., & Chang, S. J. (1991). Technological Capabilities and Japanese Foreign Direct Investment in the United States. The Review of Economics and Statistics, 73(3), 401–413. JSTOR. https://doi.org/10.2307/2109564

10.

MacKinnon, J. G. (1996). Numerical distribution functions for unit root and cointegration tests. Journal of Applied Econometrics, 11(6), 601–618.https://doi.org/10.1002/(SICI)1099-1255(199611)11:6<601:AID-JAE417>3.0.CO;2-T

11.

Mankiw, N. (2006). Principles of Macroeconomics. Boston, MA:Cengage Learning.

12.

Nguyen, T. T., Do, T. L., & Nguyen, V. D. (2016). Impacts of Monetary Policy and Information Shock on Stock Market:Case Study in Vietnam. International Journal of Economics and Finance, 8(7), 132. https://doi.org/10.5539/ijef.v8n7p132

13.

Nguyen, V. D., Dao, T. K., & Bui, Q. T. (2014). Impact of foreign direct investment on Vietnam economic growth during the period 1990- 2013 by ARDL model. The Journal of Science and Education, 1, 59–67.

14.

Nguyen, V. D., Nguyen, N. D., Nguyen, T. H. A., & Vu, H. P.(2017). Impact of fdi and co2 emission on economic growth:Evidence of some asian countries. External Economics, 91, 59–66.

15.

Ozcicek, O., & McMillin, W. D. (1999). Lag length selection in vector autoregressive models: Symmetric and asymmetric lags. Applied Economics, 31(4), 517–524. https://doi.org/10.1080/000368499324237

16.

Pfister, E., & Deffains, B. (2005). Patent Protection, Strategic FDI and Location Choices: Empirical Evidence from French Subsidiaries’ Location Choices in Emerging Economies. International Journal of the Economics of Business, 12(3), 329–346. https://doi.org/10.1080/13571510500299458

17.

Ramanathan, R. (2002). Introductory Econometrics with Applications. Retrieved from http://ecsocman.hse.ru/text/19167685/

18.

Seyoum, B. (2006). Patent protection and foreign direct investment. Thunderbird International Business Review, 48(3), 389–404. https://doi.org/10.1002/tie.20101

19.

Tang, C. F., & Tan, B. W. (2015). The impact of energy consumption, income and foreign direct investment on carbon dioxide emissions in Vietnam. Energy, 79, 447–454.https://doi.org/10.1016/j.energy.2014.11.033

20.

Yang, D., & Sonmez, M. (2013). Integration and divergence of patent systems across national and international institutions. Journal of World Business, 48(4), 527–538.https://doi.org/10.1016/j.jwb.2012.09.008

바로가기메뉴

Article Contents

Vol.18 No.6

The role of Patent on Foreign Direct Investment: Evidence in Vietnam

Abstract

Reference

The Journal of Distribution Science