Merger and acquisition activity as driver of spatial clustering: the spatial evolution of the Dutch banking industry, 1850-1993
AbstractThis paper investigates the extent to which merger and acquisition activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chance of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chance of banks located there. Our findings suggest that M&A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993.
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Bibliographic InfoPaper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1315.
Length: 35 pages
Date of creation: Sep 2013
Date of revision: Sep 2013
industrial dynamics; cluster; mergers and acquisitions; banking sector; evolutionary economic geography;
Find related papers by JEL classification:
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-11 (All new papers)
- NEP-COM-2013-10-11 (Industrial Competition)
- NEP-CSE-2013-10-11 (Economics of Strategic Management)
- NEP-GEO-2013-10-11 (Economic Geography)
- NEP-HIS-2013-10-11 (Business, Economic & Financial History)
- NEP-IND-2013-10-11 (Industrial Organization)
- NEP-URE-2013-10-11 (Urban & Real Estate Economics)
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