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Corporate Control, Foreign Ownership Regulations and Technology Transfer *
Author(s) -
ISHIKAWA JOTA,
SUGITA YOICHI,
ZHAO LAIXUN
Publication year - 2009
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2009.00547.x
Subject(s) - multinational corporation , business , control (management) , foreign ownership , industrial organization , market for corporate control , technology transfer , transfer (computing) , international trade , foreign direct investment , corporate governance , economics , finance , management , macroeconomics , shareholder , parallel computing , computer science
Multinationals are often required to form joint ventures (JVs) with local firms when entering the host country market. Explicitly taking corporate control into account, we explore the relationship between technology transfer and foreign ownership regulation in the presence of technology spillovers from JVs to local firms. It is shown that foreign ownership regulations may facilitate both technology transfer and spillovers when the multinational has corporate control. Under corporate control by the local partner firm, however, such regulations may hamper technology transfer.