Cross-border mergers & acquisitions and the role of trade costs

Arbeitspapier

Cross-border mergers and acquisitions (M&As) have increased dramatically over the last two decades. This paper analyses the role of trade costs in explaining the increase in the number 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 countries for the period 1990-2001. Our findings suggest that while in the 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CEPR Discussion Paper Series ; No. 6397

Classification and Topics

• Classification: Wirtschaft ; International Economic Order and Integration ; Economic Integration ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business
• Subject: Direktinvestition ; Übernahme ; Außenhandelsbeschränkung ; Volkswirtschaftlicher Schaden ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Görg, Holger ; Hijzen, Alexander ; Manchin, Miriam
• Event: Veröffentlichung
• (who): Centre for Economic Policy Research (CEPR)
• (where): London
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/4048
• Last update: 10.03.2025, 11:41 AM CET