FACTORS IN THE INSTABILITY OF INTERNATIONAL JOINT VENTURES - AN EVENT HISTORY ANALYSIS

This study uses Event History methodology to examine factors that may contribute to the instability of joint ventures between U.S. multinationals and foreign companies. Using joint venture contract renegotiation as a proxy for instability, it finds statistically significant support for hypotheses that joint ventures are more unstable when partners start out with uneven shares of equity and when the contracts have been renegotiated before. Contract renegotiation is also more likely in relatively open economies than in countries that impose restrictions on direct investment.