Role of Intellectual Property Rights on Economic Growth in China

Nowadays, Chinese government tries to gain more sustainable and high speed growth on the economic performance with more innovation brought by improving intellectual property rights (IPR) system. A view on protecting IP by previous studies is that the effect of strength IPR on economic growth is not clear. There is no doubt that the IPR construction could bring both benefit and cost to China. In this study, the role of IPRs on innovation activities are analyzed at first, and then I employ the cointegration theory to test the influence of IPR on China’s economic growth (GDP). The final results show that there is a significant positive relationship between IPR and GDP