Kun Jiang, Wolfgang Keller, Larry D. Qiu, William Ridley, 15 April 2018

China’s government mandates that foreign investors in certain industries form joint ventures with a domestic Chinese partner. The column uses a dataset accounting for all joint ventures in China from 1998 to 2007 to show that this policy is successful in its aim of encouraging technology transfer from foreign investors to domestic operations. It finds empirical evidence for the existence of at least three channels through which this transfer takes place.

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