Ownership Structure In Foreign Direct Investment Projects

Elizabeth Asiedu and Hadi Salehi Esfahani ()

The Review of Economics and Statistics, 2001, vol. 83, issue 4, pages 647-662

Abstract: This paper theoretically and empirically examines ownership structure in foreign direct investment (FDI) projects. We show that in choosing an ownership structure, foreign investors, local entrepreneurs, and government consider the specific, costly-to-market assets that the participants and the country bring to the project. In equilibrium, the foreign equity share rises with the importance of foreign investor assets and declines with the contribution of local assets towards the amount of surplus generated in the project. Government policies and the institutional structure of the country also affect ownership structure. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

Date: 2001
View citations in EconPapers

Downloads: (external link)
http://www.catchword.com/cgi-bin/cgi?ini=bc&body=l ... 0011101)83:4L.647;1- (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:tpr:restat:v:83:y:2001:i:4:p:647-662

Ordering information: This journal article can be ordered from
http://mitpress.mit. ... me.tcl?issn=00346535

Access Statistics for this article

The Review of Economics and Statistics is edited by Daron Acemoglu, George J. Borjas, Dani Rodrik and Julio J. Rotemberg

More articles in The Review of Economics and Statistics from MIT Press
Series data maintained by Christopher F. Baum ().