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International Joint Venture and the Technology of the Future

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Author Info
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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Abstract

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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File URL: http://www.keele.ac.uk/depts/ec/wpapers/0101.pdf
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Publisher Info
Paper provided by Department of Economics, Keele University in its series Keele Department of Economics Discussion Papers (1995-2001) with number 2001/01.

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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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Postal: Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom
Phone: +44 (0)1782 584581
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Web page: http://www.keele.ac.uk/depts/ec/cer/
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Postal: Department of Economics, Keele University, Keele, Staffordshire ST5 5BG - United Kingdom
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Web: http://www.keele.ac.uk/depts/ec/cer/pubs_kerps.htm

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Related research
Keywords: imitation; joint venture; policy uncertainty; technology transfer;

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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  1. Dasgupta, Sudipto & Tao, Zhigang, 1998. "Contractual incompleteness and the optimality of equity joint ventures," Journal of Economic Behavior & Organization, Elsevier, vol. 37(4), pages 391-413, December. [Downloadable!] (restricted)
  2. Marjit, Sugata & Mukherjee, Arijit, 1998. "Technology Collaboration and Foreign Equity Participation: A Theoretical Analysis," Review of International Economics, Blackwell Publishing, vol. 6(1), pages 142-50, February.
  3. Aghion, Philippe & Tirole, Jean, 1994. "The Management of Innovation," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 1185-1209, November. [Downloadable!] (restricted)
  4. Rodrik, Dani, 1989. "Promises, Promises: Credible Policy Reform via Signalling," Economic Journal, Royal Economic Society, vol. 99(397), pages 756-72, September. [Downloadable!] (restricted)
    Other versions:
  5. Aghion, Philippe & Tirole, Jean, 1994. "On the Management of Innovation," IDEI Working Papers 36, Institut d'Économie Industrielle (IDEI), Toulouse.
    Other versions:
  6. Sugata Marjit & Arijit Mukherjee, 2001. "Technology Transfer under Asymmetric Information: The Role of Equity Participation," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 157(2), pages 282-, June.
  7. Buffie, Edward F., 1995. "Trade liberalization, credibility and self-fulfilling failures," Journal of International Economics, Elsevier, vol. 38(1-2), pages 51-73, February. [Downloadable!] (restricted)
  8. Nancy T. Gallini & Brian D. Wright, 1990. "Technology Transfer under Asymmetric Information," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 147-160, Spring. [Downloadable!] (restricted)
  9. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August. [Downloadable!] (restricted)
    Other versions:
  10. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January. [Downloadable!] (restricted)
    Other versions:
  11. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1988. "Appropriating the Returns from Industrial R&D," Cowles Foundation Discussion Papers 862, Cowles Foundation, Yale University. [Downloadable!]
  12. Das, Satya P, 1999. "Direct Foreign Investment versus Licensing," Review of Development Economics, Blackwell Publishing, vol. 3(1), pages 86-97, February. [Downloadable!] (restricted)
  13. Marjit, Sugata & Broll, Udo & Mallick, Indrajit, 1995. "A theory of overseas joint ventures," Economics Letters, Elsevier, vol. 47(3-4), pages 367-370, March. [Downloadable!] (restricted)
  14. Aizenman, Joshua, 1992. "Trade reforms, credibility, and development," Journal of Development Economics, Elsevier, vol. 39(1), pages 163-187, July. [Downloadable!] (restricted)
    Other versions:
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