Are wholly foreign-owned enterprises better than joint ventures?
Version 2 2024-06-18, 01:38Version 2 2024-06-18, 01:38
Version 1 2017-07-26, 12:19Version 1 2017-07-26, 12:19
journal contribution
posted on 2024-06-18, 01:38authored byC-C Chao, ESH Yu
This paper provides a general equilibrium model for examining the individual as well as the joint effects of export requirements and local equity controls of multinational firms. The results suggest that for a small open economy under tariff protection, the desirable policy is 100% foreign ownership of subsidiaries, coupled with an export-share requirement.