The choice between an international joint venture and a wholly-owned subsidiary in a developing country under technology spillover effectsWing-fai Leung Open Economies Review, 1995, vol. 6, issue 4, 368 pages Abstract: A general equilibriumm model of a foreign multinational enterprise's decisions on establishing a wholly-owned subsidiary or forming a joint venture is built on firm-specific knowledge and plant-specific knowledge when there are intraindustry and interindustry technology spillovers. The welfare effects of a host developing country under closed economies, unrestricted foreign direct investment, and the policy of minimum local ownership requirements are compared. A developing country's worry is confirmed: Introduction of competition from foreign firms may not improve the welfare of the host country. However, the minimum local ownership requirement is Pareto-superior to a closed economy. Copyright Kluwer Academic Publishers 1995 Keywords: multinational enterprises; joint ventures; wholly-owned subsidiaries; technology spillovers; minimum local ownership requirements (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:kap:openec:v:6:y:1995:i:4:p:341-368 Ordering information: This journal article can be ordered from DOI: 10.1007/BF01000387 Access Statistics for this article Open Economies Review is currently edited by G.S. Tavlas More articles in Open Economies Review from Springer |
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