Sugata Marjit (Centre for Studies in Social Sciences, Calcutta, India) Arijit Mukherjee () (Keele University, Department of Economics) Tarun Kabiraj (Indian Statistical Institute, Calcutta, India)
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We consider the possibility of forming a joint venture (JV) between a local firm and a foreign multinational in a situation when there is no current gain from such an arrangement. In the presence of policy uncertainty and threat of entry, a current period formation of JV with the multinational, which is expected to come up with a superior technology in the future, gives a strategic advantage to the incumbent.
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Length: 24 pages Date of creation: Feb 2001 Date of revision: Publication status: Published in Research in Economics, September 2004, Vol. 58(3), pages 219-34. [ doi:10.1016/j.rie.2004.05.002 ] Handle: RePEc:kee:keeldp:2001/01
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Find related papers by JEL classification: F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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