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Are wholly foreign-owned enterprises better than joint ventures?
journal contributionposted on 1996-02-01, 00:00 authored by Chi-Chur Chao, E S H 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.