This paper studies why multinational firms often share ownership of a foreign affiliate with a local partner even in … the absence of government restrictions on ownership. We show that shared ownership may arise, if (i) the partner owns …. In this context shared ownership acts as a screening device. Our model predicts that the multinational?s ownership share …

, we suggest that the convergence based on the productivity, can be assisted by a reinforcement of supply-side measures …

explain the lack of convergence. A first group of approaches focuses on the lack of sufficient productivity development (free …