Why Do Multinational Firms Seek Out Joint Ventures?This paper uses a model of dichotomous choice to distinguish the characteristics of Swedish multinational firms that seek out joint ventures from those that do not. The findings suggest that firms with little experience of foreign production and highly diversified product lines are the most likely to share equity. In general, it is found that multinational firms that have the most to offer the developing countries are reluctant to enter into joint venture agreements. Therefore, imposing joint-venture status on multinationals may prevent the inflow of advanced technologies. |
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1050 Massachusetts Avenue affi affiliate's output Bureau of Economic Capital cent level Countries RD 1.00 dependent variable dichotomous choice DIV MIX Economic Research equity sharing experience of foreign firm's Fischer Black foreign affiliates foreign market foreign production GDP GNPC Gothenburg host country market income level Industriens Utredningsinstitut IUI industries inflow of advanced intangible assets James Hayes joint ventures Joseph E Lecraw liates likelihood of equity Lipsey for comments Magnus Blomstrom majority ownership majority-owned maximum likelihood minority venture minority-owned affiliates MIX SIZE GDP MNCs model of dichotomous MULTINATIONAL FIRMS SEEK National Bureau oriented multinationals ownership sharing paper parent company participation Paul Krugman Probit probit model RD YEARS DIV Regression Relations/Pacific Studies Library rent-yielding assets Robert E SAN DIEGO seek out joint sidiary production significant Stiglitz Stockholm Studies Library University suggests Sweden Swedenborg Swedish Multinationals ticipation total observations Wrong UNIVERSITY OF CALIFORNIA venture agreements Wijnbergen William Schwert zero otherwise