It is widely believed that restrictions against foreign direct investment (FDI) should be eliminated altogether. However, local equity requirements (LERs) that effectively mandate multinational enterprises (MNEs) to enter through international joint ventures (IJVs) are still common and are seemingly persistent. We seek to understand why and how governments are motivated to adopt LERs. We demonstrate that LERs can in fact be host governments' optimal choices when regulating the entry of MNEs into domestic markets formerly dominated by public firms. (JEL F13, F23, L32)

中文翻译：

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为什么国际合资企业仍然存在？

人们普遍认为，应该完全取消对外国直接投资的限制。但是，有效要求跨国企业（MNE）通过国际合资企业（IJV）进入的地方股权要求（LER）仍然很普遍，而且似乎很持久。我们试图了解为什么以及如何促使政府采用LER。我们证明，当监管跨国公司进入以前由公营公司主导的国内市场时，LER实际上可以成为东道国政府的最佳选择。（JEL F13，F23，L32）