Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74269
Authors: 
Gattai, Valeria
Year of Publication: 
2005
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 121.2005
Abstract: 
This paper provides a theoretical formalisation of the joint-venture contract, as an alternative to Foreign Direct Investment (FDI), within a Dissipation of Intangible Assets framework. In a two-period model, we discuss how the threat of knowledge spillover shapes the boundaries of a Multinational Enterprise. Similarly to the theoretical findings on the FDI-licensing trade off, we show that the integrated solution is more likely to emerge when know-how easily spills over – i.e. when firms are endowed with more Intangible Assets or they belong to high tech industries. Probit estimates, from a new firm-level dataset, show that Japanese manufacturing operations in Europe are in line with these predictions.
Subjects: 
Dissipation
Intangible assets
FDI
joint-venture
Internalisation
Japan
JEL: 
F23
C25
O5
Document Type: 
Working Paper

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