International Joint Ventures, Moral Hazards, and Technology Spillovers

  • Kar-yiu Wong, Wing-fai Leung
  • Published 2001

Abstract

In this paper, we provide a theory to explain why a multinational corporation and a local ̄rm choose to form an international joint venture (IJV) and why they decide to dissolve it sometime later. Our theory has two important features: moral hazard and technology spillovers. Because of moral hazard, a ̄rm may not provide the right e®ort to make an IJV… (More)

Topics

5 Figures and Tables

Slides referencing similar topics