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Mergers and Economies of Scale: Volkswagen AG 1976 - 2000

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Author Info
Rudholm, Niklas () (The Swedish Retail Institute (HUI))
Abstract

The 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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Publisher Info
Paper provided by The Swedish Retail Institute (HUI) in its series HUI Working Papers with number 4.

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Length: 21 pages
Date of creation: 01 Oct 2006
Date of revision:
Handle: RePEc:hhs:huiwps:0004

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Postal: The Swedish Retail Institute (HUI), Regeringsgatan 60, 103 29 Stockholm, Sweden
Phone: +46 (0)8 762 72 80
Fax: +46 (0)8 679 76 06
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Web page: http://www.hui.se/
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Related research
Keywords: Automobile production; economies of scale; technological change;

Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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  1. Truett, Lila J & Truett, Dale B, 2001. "The Spanish Automotive Industry: Scale Economies and Input Relationships," Applied Economics, Taylor and Francis Journals, vol. 33(12), pages 1503-13, October. [Downloadable!] (restricted)
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