@techreport{3d40edcdc8eb4e70ba8c3022a7aa465a,
title = "Dual and common agency issues in international joint ventures: Evidence from China",
abstract = "With the help of a theoretical model we analyze the relation between equity sharing in an international joint venture (EJV) and local public goods provision in a setting where the local government faces a commitment problem to provide public services ex post to the set-up of the firm. We show that to overcome such a dual agency problem, the multinational leaves more local rents to the local partner than in the first-best, so as to provide stronger incentives for the government to supply public goods. Applying dynamic panel data estimation, we test the trade-off between local public goods and ownership shares across 31 Chinese provinces to find support for our mechanism",
keywords = "Equity sharing, foreign investment, local public goods, China ",
author = "H.J. Roelfsema and Y. Zhang",
year = "2010",
language = "English",
series = "Discussion Paper Series / Tjalling C. Koopmans Research Institute ",
publisher = "UU USE Tjalling C. Koopmans Research Institute",
number = "05",
type = "WorkingPaper",
institution = "UU USE Tjalling C. Koopmans Research Institute",
}