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Yasunobu Tomoda and Hiroshi Kurata
''Foreign equity caps for international joint ventures''
( 2004, Vol. 6 No.20 )
We analyze foreign equity caps for international joint ventures. We develop a partial equilibrium model in which foreign equity caps are determined endogenously and find an interesting property, named a welfare indifference property i.e., maximization of domestic welfare and that of world welfare are indifferent for the host government. This property also implies that the government is indifferent to the distribution of a JV's profit.
JEL: F1 - Trade: General
F2 - International Factor Movements and International Business: General
Manuscript Received : Aug 06 2004 Manuscript Accepted : Oct 27 2004

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