International Joint Venture And Host-Country Policies

In the presence of international joint ventures, effects of policies like foreign equity cap, trade protection and domestic resource requirement restriction towards equity sharing and welfare are analysed. Foreign equity cap reduces host country's welfare. Trade protection lowers equity share f...

Full description

Saved in:
Bibliographic Details
Published in:Japanese economic review (Oxford, England) England), 2003-12, Vol.54 (4), p.381-394
Main Authors: Das, Satya P., Katayama, Seiichi
Format: Article
Language:English
Subjects:
Developing countries
Economic models
Economic theory
Economics
Equity
Foreign direct investment
International trade
Joint ventures
Multinational enterprises
Protectionism
Social welfare
Studies
Trade policy
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In the presence of international joint ventures, effects of policies like foreign equity cap, trade protection and domestic resource requirement restriction towards equity sharing and welfare are analysed. Foreign equity cap reduces host country's welfare. Trade protection lowers equity share for the local firm. It has a first‐order source of welfare gain as the internal efficiency of the firm improves. Also, there is a first‐order loss resulting from a leakage effect, since a part of the surplus goes to a foreign firm. A marginal domestic resource requirement restriction enhances the joint surplus of the venture and social welfare.
ISSN:1352-4739
1468-5876
DOI:10.1111/1468-5876.t01-1-00065