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3 avril 2009
- handle: 10670/1.m1x1fo
- hal: hal-02821086
- PRODINRA: 295272
info:eu-repo/semantics/OpenAccess
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Technological transfer Transfer of technologyCiter ce document
Ngo van Long et al., « The pace of technology transfer in anticipation of joint venture breakup », Archive Ouverte d'INRAE, ID : 10670/1.m1x1fo
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Résumé
This paper studies the properties of joint-venture relationship between a technologically advanced multinational firm and a local firm operating in a developing economy where the ability to enforce contracts is weak. We formulate a dynamic model of principal-agent relationship in which at any point of time the local firm can quit without legal penalties. An early breakup may be prevented if the multinational designs a suitable scheme in which both the pace and aggregate amount of technology transfer deviate from the first-best, and a suitable flow of side payments to encourage the local firm to stay longer.