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Cross-Border Mergers and Acquisitions: On Revealed Comparative Advantage and Merger Waves Author info | Abstract | Publisher info | Download info | Related research | Statistics Steven Brakman ()
Harry Garretsen ()
Charles van Marrewijk
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By combining two large data sets (on international trade flows and on mergers and acquisitions - M&As), we are able to test two implications of Neary’s (2003, 2004a) recent theoretical work. Analyzing M&As in a General Oligopolistic Equilibrium (GOLE) model incorporating strategic interaction between firms in a general equilibrium setting, we argue that: (i) M&As follow revealed comparative advantage as measured by the Balassa index, and (ii) M&As come in waves. We find convincing support for both hypotheses, thus showing for the first time that there is an empirical connection between export performance and mergers and acquisitions.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1602.
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Date of creation: 2005Date of revision:
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Keywords: comparative advantage ; cross border mergers and acquisitions ; merger waves ; general oligopolistic equilibrium model ; Other versions of this item:
Find related papers by JEL classification: F10 - International Economics - - Trade - - - General F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Ray Chaudhuri, A. & Benchekroun, H., 2008.
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Discussion Paper
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Other versions: Ray Chaudhuri, A., 2008.
"A Dynamic Model of Endogenous Mergers and Trade Liberalization ,"
Discussion Paper
2008-005, Tilburg University, Tilburg Law and Economic Center.
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Other versions: Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2006.
"Cross-Border Mergers & Acquisitions: The Facts as a Guide for International Economics ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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J Peter Neary, 2005.
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"Trade costs and foreign direct investment ,"
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