Why do multinational firms seek out joint ventures?

Magnus Blomström and Mario Zejan

Journal of International Development, 1991, vol. 3, issue 1, 53-63

Abstract: 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 main findings suggest that firms with brief experience of foreign production and highly diversified product lines are the most likely to choose minority ownership. There was also some support for the hypothesis that multinationals choose minority ownership for affiliates producing different (two‐digit) output than their parents.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:3:y:1991:i:1:p:53-63

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