WHY DO MANDATED INTERNATIONAL JOINT VENTURES STILL EXIST?

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...

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Publicado en:Contemporary Economic Policy Vol. 39; no. 1; pp. 236 - 248
Autores principales: Cai, Dapeng, Karasawa‐Ohtashiro, Yukio
Formato: Artículo
Publicado: Wiley-Blackwell Jan2021
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Acceso en línea:Ver este registro en EBSCOhost
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          Cai, Dapeng
          Karasawa‐Ohtashiro, Yukio
        affil: Faculty of Economics, Nanzan University, 18 Yamazato‐cho, Showa‐ku, Nagoya 466‐8673, , Japan
      su:
        International business enterprises
        Joint ventures
        Foreign investments
      sug:
        subj:
          International business enterprises
          International Trade Financing
          Joint ventures
          Foreign investments
      ab: 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.
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    language: English
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