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Effects of a Domestic Merger on Exports: The case study of a merger of Korean automakers in 1998 (Japanese)

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  • OHASHI Hiroshi
  • TOYAMA Yuta

Abstract

This paper examines the economic consequences of a horizontal merger between two Korean automakers in 1998. Estimates of structural demand and supply reveal that the merger enhanced the production efficiency of the merging parties by a magnitude of 8.4%. Simulations based on the estimates indicate that while the merger increased domestic auto prices, it more than doubled the exports of the merging parties. The merger effects vary according to auto model type.

Suggested Citation

  • OHASHI Hiroshi & TOYAMA Yuta, 2012. "Effects of a Domestic Merger on Exports: The case study of a merger of Korean automakers in 1998 (Japanese)," Discussion Papers (Japanese) 12008, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:rdpsjp:12008
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