In this paper, we analyze the reason behind the use of foreign ownership restrictions on inward Foreign Direct … effect of the host government's welfare preference on the optimal foreign ownership restriction. Since the analytical … economic factors but also political factors play an important role in the determination of the foreign ownership restrictions. …

This paper examines host governments' motivation for restricting ownership shares of multinational firms(MNFs) in … firm-specific advantage. In contrast, a joint venture (JV) partner might observe this surplus depending on its ownership … share. The host government can alleviate its informational constraints by using ownership restrictions to force a JV. This …