European intellectual property institutions and Chinese foreign direct investment

What is it about?

We find a negative and non-linear effect of European Intellectual Property Institutions (IP) on Chinese outward FDI (OFDI) which becomes stronger in the median and upper-quantiles of recipient European countries. Our findings suggest that high institutional differences between countries negatively affect OFDI. It seems that IP strengthening may not be supportive for Chinese investment in Europe while GDP per capita, population, trade openness and unit labour costs exert a positive effect on Chinese OFDI.  

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