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