TY - JOUR
T1 - Cross-Border Merger & Acquisition Activity and Revealed Comparative Advantage in Manufacturing Industries
AU - Brakman, Steven
AU - Garretsen, Harry
AU - Van Marrewijk, Charles
AU - Van Witteloostuijn, Arjen
PY - 2013/3/1
Y1 - 2013/3/1
N2 - We estimate an important implication of oligopolistic international trade modeling for the predicted pattern of cross-border mergers and acquisitions (M&As). Our core argument is that cross-border M&As are, among other factors, driven by cross-country differences in comparative advantage. We find strong evidence that acquiring firms operate in industries with a comparative advantage. We also report (less pronounced) evidence that this holds for target firms as well. We therefore add another explanation, rooted in international economics, to the industrial organization literature on M&As that emphasizes efficiency and strategic motives.
AB - We estimate an important implication of oligopolistic international trade modeling for the predicted pattern of cross-border mergers and acquisitions (M&As). Our core argument is that cross-border M&As are, among other factors, driven by cross-country differences in comparative advantage. We find strong evidence that acquiring firms operate in industries with a comparative advantage. We also report (less pronounced) evidence that this holds for target firms as well. We therefore add another explanation, rooted in international economics, to the industrial organization literature on M&As that emphasizes efficiency and strategic motives.
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U2 - 10.1111/jems.12007
DO - 10.1111/jems.12007
M3 - Article
AN - SCOPUS:84872247102
SN - 1058-6407
VL - 22
SP - 28
EP - 57
JO - Journal of Economics and Management Strategy
JF - Journal of Economics and Management Strategy
IS - 1
ER -