Mergers and Economies of Scale: Volkswagen AG 1976 - 2000
AbstractThe purpose of this paper is to study if the acquisitions of the SEAT and Skoda has lead to increased economic efficiency for Volkswagen AG due to economies of scale. This is achieved by estimation of the VAG cost function, using a translog specification. The results indicate that the merger with SEAT did increase the economies of scale available as production volumes increased due to the merger. No such effects was, however, found for the aquisition of Skoda.
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Bibliographic InfoPaper provided by HUI Research in its series HUI Working Papers with number 4.
Length: 21 pages
Date of creation: 01 Oct 2006
Date of revision:
Publication status: Published as Rudholm, Niklas, 'Mergers and Economies of Scale: Volkswagen AG 1976 - 2000' in ICFAI Journal of Mergers and Acquisitions, 2007, pages 79-90.
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Automobile production; economies of scale; technological change;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-03 (All new papers)
- NEP-COM-2007-03-03 (Industrial Competition)
- NEP-EFF-2007-03-03 (Efficiency & Productivity)
- NEP-HIS-2007-03-03 (Business, Economic & Financial History)
- NEP-IND-2007-03-03 (Industrial Organization)
- NEP-TID-2007-03-03 (Technology & Industrial Dynamics)
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.:
- Lila Truett & Dale Truett, 2001. "The Spanish automotive industry: scale economies and input relationships," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1503-1513.
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