Gabrielsen, T.S.; Schjelderup, G. - Institutt for Økonomi, Universitetet i Bergen - 1998
The paper studies the performance of joint ventures where upstream firms sell inputs to a production joint venture. It … is found that joint ventures lead to overinvoicing of input prices (transfer prices) compared to integrated firms … resulting in lower aggregate profits. Tax and tariff policy may improve the organizational inefficiencies of joint ventures. The …