Why Do Multinational Firms Seek Out Joint Ventures?

24 Pages Posted: 27 Apr 2000 Last revised: 1 Sep 2010

See all articles by Magnus Blomstrom

Magnus Blomstrom

Stockholm School of Economics - Department of Economics; National Bureau of Economic Research (NBER), at New York; Centre for Economic Policy Research (CEPR)

Mario Zejan

SIDA

Date Written: May 1989

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.

Suggested Citation

Blomstrom, Magnus and Zejan, Mario, Why Do Multinational Firms Seek Out Joint Ventures? (May 1989). NBER Working Paper No. w2987. Available at SSRN: https://ssrn.com/abstract=227208

Magnus Blomstrom (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46 8 736 9265 (Phone)
+46 8 342 818 (Fax)

National Bureau of Economic Research (NBER), at New York

365 Fifth Avenue, 5th Floor
New York, NY 10016-4309
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Mario Zejan

SIDA ( email )

105 25 Stockholm
Sweden
+46-8-698 50 00 (Phone)
+46-8-20 88 64 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
63
rank
341,780
Abstract Views
1,250
PlumX Metrics