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International Joint Venture and the Technology of the Future

Author

Listed:
  • Sugata Marjit

    (Centre for Studies in Social Sciences, Calcutta, India)

  • Arijit Mukherjee

    (Keele University, Department of Economics)

  • Tarun Kabiraj

    (Indian Statistical Institute, Calcutta, India)

Abstract

We consider the possibility of forming a joint venture (JV) between a local firm and a foreign multinational in a situation when there is no current gain from such an arrangement. In the presence of policy uncertainty and threat of entry, a current period formation of JV with the multinational, which is expected to come up with a superior technology in the future, gives a strategic advantage to the incumbent.

Suggested Citation

  • Sugata Marjit & Arijit Mukherjee & Tarun Kabiraj, 2001. "International Joint Venture and the Technology of the Future," Keele Department of Economics Discussion Papers (1995-2001) 2001/01, Department of Economics, Keele University.
    • Handle: RePEc:kee:keeldp:2001/01
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    File URL: http://www.keele.ac.uk/depts/ec/wpapers/0101.pdf
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    More about this item

    Keywords

    imitation; joint venture; policy uncertainty; technology transfer;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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