1982 Articles

The economics of joint ventures in centrally planned and labor-managed economies

Svejnar, Jan; Smith, Stephen C.

The paper analyzes the allocational and distributional issues connected with the operation of joint ventures by firms in Yugoslavia, several Eastern European countries and the People's Republic of China with Western firms. A variable-bargaining-power model is used to examine the behavior of joint ventures under the various institutional circumstances of these countries. Contrary to Brada's conclusions (J. Comp. Econ. 1(2):167–181, June 1977), the present study indicates that the behavior of joint ventures in most of these countries is likely to be quite similar.