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Firm's intangible assets and multinational activity: Full versus shared ownership

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  • Valeria Gattai

Abstract

This paper analyses the choice of full versus shared ownership of the production affiliate made by Italian multinationals in Asia, based on an entirely new firm-level dataset, constructed by the author. The decision to internalise production, rather than relying on a local partner, is driven by the threat of Dissipation of Intangible Assets, both at a theoretical and an empirical level. In particular, we show that full ownership is more likely to emerge in Asia for Italian firms endowed with better technology and human capital, or belonging to high tech sectors.

Suggested Citation

  • Valeria Gattai, 2010. "Firm's intangible assets and multinational activity: Full versus shared ownership," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(4), pages 553-589.
  • Handle: RePEc:taf:jitecd:v:19:y:2010:i:4:p:553-589
    DOI: 10.1080/09638199.2010.506335
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    More about this item

    Keywords

    intangible assets; ownership; wholly-owned subsidiary; joint-venture; Asia;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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