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Why Do Multinational Firms Seek Out Joint Ventures?

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Magnus Blomstrom
Mario Zejan

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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 findings suggest that firms with little experience of foreign production and highly diversified product lines are the most likely to share equity. In general, it is found that multinational firms that have the most to offer the developing countries are reluctant to enter into joint venture agreements. Therefore, imposing joint-venture status on multinationals may prevent the inflow of advanced technologies.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2987.

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Date of creation: Oct 1991
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Handle: RePEc:nbr:nberwo:2987

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  1. Smarzynska, Beata K., 2000. "Technological leadership and foreign investors'choice of entry mode," Policy Research Working Paper Series 2314, The World Bank. [Downloadable!]
  2. Mihir A. Desai & C. Fritz Foley & James R. Hines Jr., 2002. "International Joint Ventures and the Boundaries of the Firm," NBER Working Papers 9115, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Javorcik, Beata Smarzynska & Saggi, Kamal, 2004. "Technological asymmetry among foreign investors and mode of entry," Policy Research Working Paper Series 3196, The World Bank. [Downloadable!]
  4. Laura Resmini, 1999. "The Determinants of Foreign Direct Investment into the CEECs: New Evidence from Sectoral Patterns," LICOS Discussion Papers 8399, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
    Other versions:
  5. Smarzynska Javorcik, Beata & Wei, Shang-Jin, 2001. "Corruption and Foreign Direct Investment: Firm-Level Evidence," CEPR Discussion Papers 2967, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank. [Downloadable!]
  7. Wing-Fai Leung, 1997. "The duration of international joint ventures an foreign wholly-owned subsidiaries," Applied Economics, Taylor and Francis Journals, vol. 29(10), pages 1255-1269, October. [Downloadable!] (restricted)
  8. Magnus Blomstrom, 1992. "Host Country Benefits of Foreign Investment," NBER Working Papers 3615, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Magnus Blomstrom & Fredrik Sjoholm, 1998. "Technology Transfer and Spillovers? Does Local Participation with Multinationals Matter?," NBER Working Papers 6816, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Smarzynska, Beata K. & Shang-Jin Wei, 2000. "Corruption and the composition of foreign direct investment - firm-level evidence," Policy Research Working Paper Series 2360, The World Bank. [Downloadable!]
  11. Beata K. Smarzynska & Shang-Jin Wei, 2002. "Corruption and Cross-Border Investment: Firm-Level Evidence," William Davidson Institute Working Papers Series 494, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  12. Blomström, Magnus & Globerman, Steve & Kokko, Ari, 2000. "The Determinants of Host Country Spillovers from Foreign Direct Investment," CEPR Discussion Papers 2350, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  13. Beata K. Smarzynska & Shang-Jin Wei, 2000. "Corruption and Composition of Foreign Direct Investment: Firm-Level Evidence," NBER Working Papers 7969, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Beata S. Javorcik & Shang-Jin Wei, 2009. "Corruption and Cross-Border Investment in Emerging Markets: Firm-Level Evidence," Working Papers 062009, Hong Kong Institute for Monetary Research. [Downloadable!]
    Other versions:
  15. Valeria Gattai, 2009. "Firm’s intangible assets and multinational activity: full versus shared ownership," Working Papers 154, University of Milano-Bicocca, Department of Economics, revised Feb 2009. [Downloadable!]
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