Resource title

Cross-border mergers and acquisitions : on revealed comparative advantage and merger waves

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image for OpenScout resource :: Cross-border mergers and acquisitions : on revealed comparative advantage and merger waves

Resource description

By combining two large data sets (on international trade flows and on mergers and acquisitions – M&As), we are able to test two implications of Neary?s (2003, 2004a) recent theoretical work. Analyzing M&As in a General Oligopolistic Equilibrium (GOLE) model incorporating strategic interaction between firms in a general equilibrium setting, we argue that: (i) M&As follow revealed comparative advantage as measured by the Balassa index, and (ii) M&As come in waves. We find convincing support for both hypotheses, thus showing for the first time that there is an empirical connection between export performance and mergers and acquisitions

Resource author

Steven Brakman, Harry Garretsen, Charles van Marrewijk

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19066

Resource license

Adapt according to the presented license agreement and reference the original author.