Temporary partnerships as an information transmission mechanism

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Temporary partnerships as an information transmission mechanism

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dc.contributor.author Møllgaard, H. Peter en_US
dc.contributor.author Overgaard, Per Baltzer en_US
dc.date.accessioned 2009-02-04T10:27:33Z
dc.date.available 2009-02-04T10:27:33Z
dc.date.issued 1998-11-18T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7496
dc.description.abstract Asymmetric information and fear of acquiring a 'lemon' may explain the paucity of foreign investment in emerging market economies. If investors are uncertain about the profitability of investments, intrinsically inefficient, temporary partnerships or joint ventures may serve as mechanisms through which information is transmitted. Temporary partnerships with joint in- vestments by the domestic firm and the foreign investor, together with a buy-out option to the investor, can be used to separate good and bad invest- ment prospects in equilibrium. However, non-revealing equilibria may exist. Implications for foreign direct investment are traced and briefly related to the experience of transition economies. Keywords: investment, complementary assets, partnerships, joint ventures and licensing, costly signaling JEL: D8, F2, L14, O12 en_US
dc.format.extent 25 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;1998-10 en_US
dc.relation.ispartofseries Discussion papers;1998-13 en_US
dc.subject.other direkte investeringer en_US
dc.subject.other emerging markets en_US
dc.title Temporary partnerships as an information transmission mechanism en_US
dc.type wp en_US
dc.accessionstatus AAmodt98nov13 KAT98nov18 flema en_US
dc.contributor.corporation University of Copenhagen en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut
dc.contributor.departmentshort ECON
dc.contributor.departmentuk Department of Economics
dc.contributor.departmentukshort ECON
dc.idnumber x644949618 en_US
dc.publisher.city København en_US
dc.publisher.year 1998 en_US
dc.title.subtitle foreign investment in emerging markets en_US


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