Javorcik, Beata K. Smarzynska; Wei, Shang-jin - 2000
The authors study the impact of corruption in a host country on foreign investors' preference for a joint venture, or a … wholly owned subsidiary. Their simple model highlights a basic tradeoff in using local partners. On the one hand, corruption … bureaucratic maze. On the other hand, corruption decreases the effective protection of an investors' intangible assets, and reduces …