Cross-Border Mergers & Acquistions and the Role of Trade Costs
Subtitle :
Abstract : Cross-border mergers and acquisitions (M&As) have increased dramatically over the last two decades. his paper analyses the role of trade costs in explaining the increase in then umber of cross-border mergers and acquisitions. In particular, we distinguish horizontal and non-horizontal M&As and investigate whether trade costs affect these two types of mergers differently. We analyse this question using industry data for 23 OECD aggregate trade costs affect cross-border merger activity negatively its impact differs importantly across horizontal and non-horizontal mergers. The impact of trade costs is less negative for horizontal mergers, which is consistent with the tariff-jumping argument.
Registration No : B1350 Author : Centre for Economic Policy Research
Edition : Impresum : London: CEPR, 2007 Description : Language : English
