EconPapers    
Economics at your fingertips  
 

WHY DO MANDATED INTERNATIONAL JOINT VENTURES STILL EXIST?

Dapeng Cai () and Yukio Karasawa‐Ohtashiro
Authors registered in the RePEc Author Service: Yukio Karasawa-Ohtashiro ()

Contemporary Economic Policy, 2021, vol. 39, issue 1, 236-247

Abstract: It is widely believed that restrictions against foreign direct investment (FDI) should be eliminated altogether. However, local equity requirements (LERs) that effectively mandate multinational enterprises (MNEs) to enter through international joint ventures (IJVs) are still common and are seemingly persistent. We seek to understand why and how governments are motivated to adopt LERs. We demonstrate that LERs can in fact be host governments' optimal choices when regulating the entry of MNEs into domestic markets formerly dominated by public firms. (JEL F13, F23, L32)

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/coep.12490

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: https://EconPapers.repec.org/RePEc:bla:coecpo:v:39:y:2021:i:1:p:236-247

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1074-3529

Access Statistics for this article

Contemporary Economic Policy is currently edited by Brad R. Humphreys

More articles in Contemporary Economic Policy from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-09-26
Handle: RePEc:bla:coecpo:v:39:y:2021:i:1:p:236-247