IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Mergers and the Competitive Process

Listed author(s):
  • John Baldwin
  • Paul Gorecki

This paper uses a longitudinal data base of establishments and firms taken from the Canadian Census of Manufactures to measure the intensity of mergers and to compare them to other change that leads to firm turnover. The importance of mergers is placed in the context of the plant and firm turnover process by comparing the amount of each merger type to alternate forms of expansion. Horizontal merger activity is compared to the creation of new plants by continuing firms. Entry by diversification is compared to entry by plant birth. The paper then investigates post-merger success by examining market share, productivity, and profitability changes. When the extent to which acquired plants are subsequently divested is used to evaluate success, this divestiture process is compare to the exit rate of newly built plants. When changes in post-merger market share are examined, a regression is used to examine whether merged plants act any differently than other plants. When post merger productivity and profitability changes are examined, they are compared to what is happening to other plants in the same industry. The paper finds that the merger process contributes an important part of firm turnover and that the merger process improves productivity and profitability.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: First version 1990
Download Restriction: no

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 773.

in new window

Date of creation: Feb 1990
Handle: RePEc:qed:wpaper:773
Contact details of provider: Postal:
Kingston, Ontario, K7L 3N6

Phone: (613) 533-2250
Fax: (613) 533-6668
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:qed:wpaper:773. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.