THE NEXUS BETWEEN INTELLECTUAL PROPERTY RIGHTS AND FOREIGN DIRECT INVESTMENT IN CENTRAL ASIAN COUNTRIES: A SPECIAL REFERENCE TO UZBEKISTAN

Abstract

Using a panel data model and yearly data from 2000 to 2020, this study explores the relationship between intellectual property rights (IPR) protection and foreign direct investment (FDI) in selected Central Asian countries, including Uzbekistan, Kazakhstan, and Kyrgyzstan. This paper contributes to the literature by establishing the following significant conclusions, including market size and trade openness as a main driver of FDI inflows into Central Asian countries especially, Uzbekistan. For every one percent increase in patent applications, FDI increases by 0.004%. Furthermore, there is a significant positive relationship between trade openness and foreign direct investments, with a 0.079 percent increase in FDI for every one percent increase in trade openness. Surprisingly, GDP has a minor negative impact on foreign direct investment, but not significant.