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required that Chinese IPR laws (. patents, copyrights a nd trademarks) be better aligned with the WTO’s Agreement on TradeRelated Aspects of Intellectual Property Rights (TRIPS) and other major international IPR conventions (Maskus, 2021). Since 1992, foreign patents have increased steadily with an annual growth rate of 19% (see follow picture) of Chinese patents (invention patent applications) were filed by foreign firms with the most important patentees ing from Japan, the US, EU member countries, and South Korea. 9 The objective of this paper is to investigate the impact of China’s IPR laws on its ability to attract FDI from 1992–2021. This paper contributes to the literature in several ways. First, this is the first empirical analysis focusing on a large and influential developing economy that has experienced significant changes in its IPR systems in the past two decades. Thus, this analysis provides an alternative to most previous studies that usually emphasize FDI flows from the perspective of a major industrialized parentnation (., United States) to a diverse group of host nations. Second, we also explore the possibility that the effect of IPR protection on FDI may vary by the level of economic development in partner countries (Smith, 2021). Third, in contrast to studies based on crosssectional data from a single year, this study uses a panel data for 38 countries which covers a more extended time period (1992–2021) and allows for the consideration of the dynamic nature of the relationship between FDI and policy changes in IPR regimes. Fourth, this paper applies two alternative measures of IPR as a proxy for IPR regimes: Annual foreign patent applications as a measure of the strength of IPR protection in China The IPR index, used by most previous studies, is based on a scoring method that is often arbitrary in their choice of weights on the importance of various criteria. Although useful in some cases, the indexbased measures of IPR, based on laws on the books, may not adequately capture the dynamic nature of the interaction between changes in patent laws and standards over time as well as their potential impact on other economic variables (., FDI). Alternatively, we use actual data on the number of patent applications from parent countries over time. The growing number of foreign patents filed each year could be a good indicator of growing confidence of foreign firms in the IPR protection laws and enforcement offered in China. Relative to the indexbased approach, this measure of IPR protection strength accounts for more variation across time and may be less susceptible to measurement errors. The main finding from this study suggests that the strengthening of IPR protection in China led to an increase in its FDI inflows. This paper’s empirical results further support the hypothesis that the strengthening of patent laws has a market expansion effect. Furthermore, our results also show that FDI from Hong Kong and Taiwan behaves differently from the FDI originating from other highine countries. Thus, this study provides much needed empirical evidence on the current debate regarding policy reforms in IPR regimes and its effects on technology transfer and trade with China. The nature of the linkages between IPR protection and global direct investment is ambiguous and has been a source of much debate and controversy. Disagreements persist on whether stronger IPR protection stimulates or discourages FDI flows to developing countries (for a