Determinants of ownership preference of international joint ventures: new evidence from Chinese manufacturing industries
✍ Scribed by Hongxin Zhao; Gangti Zhu
- Publisher
- Elsevier Science
- Year
- 1998
- Tongue
- English
- Weight
- 93 KB
- Volume
- 7
- Category
- Article
- ISSN
- 0969-5931
No coin nor oath required. For personal study only.
✦ Synopsis
Given the large size and rapid growth of foreign direct investment in China, the subject of ownership preference is of great interest to academics as well as to firms intending to invest in China. This study focuses on two sets of variables: industry-specific factors and venturespecific factors. Statistical tests based on information of 818 international joint ventures (IJVs) in China show that duration and scale of IJVs are positively associated with the level of foreign ownership. Industry-specific factors such as skill intensity, market concentration, market potentials, and foreign business agglomerations also positively influence the ownership preference of foreign firms, while local industry R and D intensity and productivity are found to be significant but negatively associated with the ownership preference.