Online Archive of University of Virginia Scholarship
Essays on International Trade and Political Economy: The Importance of Incentives, Information, and Globalization470 views
Author
Karabay, Bilgehan, Department of Economics, University of Virginia
Advisors
McLaren, John, Department of Economics, University of Virginia
Engers, Maxim, Department of Economics, University of Virginia
Blanchard, Emily
Medina, Luis
Abstract
Chapter 1. This paper examines host governments' motivations for restricting ownership shares of multinational firms (MNFs) in foreign direct investment (FDI) projects. A host country has a profitable investment opportunity. The host government wants to capture the project's rent yet cannot observe the surplus created by the MNF. In contrast. a joint venture (JV) partner can observe the surplus. The host government can alleviate its informational constraints by using ownership restrictions to force a JV. This calls into question the wisdom of calls for ‘liberalizing' FDI flows by the elimination of domestic JV requirements.
Note: Abstract extracted from PDF file via OCR
Degree
PHD (Doctor of Philosophy)
Keywords
multinational firms; ownership shares; international trade; politcial economy
Language
English
Rights
All rights reserved (no additional license for public reuse)
Karabay, Bilgehan. Essays on International Trade and Political Economy: The Importance of Incentives, Information, and Globalization. University of Virginia, Department of Economics, PHD (Doctor of Philosophy), 2006-08-01, https://doi.org/10.18130/V3X29S.
