Smarzynska, Beata K.2013-09-042013-09-042002-02https://hdl.handle.net/10986/15634While existing literature has examined the impact of intellectual property protection on the volume of foreign direct investment (FDI), little is known about its effect on the composition of FDI inflows. The author addresses this question empirically, using a unique firm-level data set from Eastern Europe and the former Soviet Union. She finds that weak protection deters foreign investors in technology-intensive sectors that rely heavily on intellectual property rights. The results also indicate that a weak intellectual property regime encourages investors to undertake projects focusing on distribution rather than local production. The latter effect is present in all sectors, not just those relying heavily on intellectual property protection.en-USCC BY 3.0 IGOALLIANCESCAPITAL INFLOWSCOALCODESCOMPETITIVENESSCONSUMERSCOPYRIGHTCORRUPTIONDESTINATION COUNTRYECONOMIC ACTIVITYECONOMIC ANALYSISECONOMIC BEHAVIORECONOMIC DEVELOPMENTECONOMIES OF SCALEEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL STUDIESEXPORTSFOREIGN AFFILIATESFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN INVESTORFOREIGN INVESTORSFOREIGN PRESENCEGDPGDP PER CAPITAGLOBAL ECONOMYGLOBAL TRADINGGOVERNING INVESTMENTIMPORTSINTELLECTUAL PROPERTYINTELLECTUAL PROPERTY RIGHTSINTERNATIONAL INVESTMENTINTERNATIONAL POLICYINTERNATIONAL TRADEINVESTMENT DECISIONKNOWLEDGE ACCUMULATIONLABOR COSTSLAW FIRMSLAWSLEGAL RULESLEGISLATIONLOCAL CONSUMERSLOCAL FIRMSLOCAL PRODUCERSLOCAL PRODUCTIONMARKET SIZEOILPATENTSPRIVATE SECTORPRIVATIZATIONPRODUCERSPRODUCTION PROCESSPRODUCTION TECHNOLOGYPROPERTY RIGHTSPUBLIC COMPANIESPUBLISHERSPURCHASING POWERSTANDARD VARIABLESSTATEMENTSTAX RATESTAXATIONTECHNOLOGICAL CAPABILITIESTECHNOLOGY TRANSFERTRADE FLOWSTRADE RESTRICTIONSTRADING SYSTEMTRANSACTION COSTSTRANSITION ECONOMIESTRANSITION PERIODTRANSPARENCYWorld Bank10.1596/1813-9450-2786