Title
Cross-border merger & acquisition activity and revealed comparative advantage in manufacturing industries Cross-border merger & acquisition activity and revealed comparative advantage in manufacturing industries
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Cambridge, Mass. ,
Subject
Economics
Source (journal)
Journal of economics & management strategy. - Cambridge, Mass.
Volume/pages
22(2013) :1 , p. 28-57
ISSN
1058-6407
1530-9134
ISI
000317286100002
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
We estimate an important implication of oligopolistic international trade modeling for the predicted pattern of cross-border mergers and acquisitions (M&As). Our core argument is that cross-border M&As are, among other factors, driven by cross-country differences in comparative advantage.We find strong evidence that acquiring firms operate in industries with a comparative advantage. We also report (less pronounced) evidence that this holds for target firms as well. We therefore add another explanation, rooted in international economics, to the industrial organization literature on M&As that emphasizes efficiency and strategic motives.
E-info
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