Abstract

Previous research had identified various determinants in view of growth disparities across nations. In this paper some restriction will be made to the determinants variables and resolved instrumental regression technique. Undoubtedly, the role played by foreign direct investment (FDI), stock of human capitals and countries openness are very significant in achieving higher economic growth. However, when the TRIPS agreements effectively enforced within the WTO framework in 1995, changes in multilateral economic activities were found to be obvious. The partial role  played by the intellectual property (IP) to attract FDI as an alternatives channel to improved economic competitions had proven to become a strategic policy to achieve better growth. In this paper, two stages of econometric model will be used. All the selected endogenous variables will be estimated in the first-stage and the partial strength of the selected endogenous variables will then be re-estimated into the growth model in the second stage. 

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