Arbeitspapier

The Location of Cross-Border Mergers & Acquisitions in the USA

The research on the location choice for Foreign Direct Investment (FDI) is traditionally restricted to a choice between countries. The within-country location choice is less prominent in the literature. If within-country location decisions are considered it is mostly limited to Greenfield investments. The vast majority of FDI, however, takes place in the form of cross-border Mergers & Acquisitions (M&As), and for this form of FDI (empirical) research on location choice within countries has been neglected. In this paper we analyze the within country location-target selection of M&As in the USA. Extending Guadalupe (2012), by introducing location choice, and applying the consequences of super-modularity of our model we analyze the within country location choice of (cross-border) M&As. Using a detailed firm level data set for all manufacturing sector M&As across the USA for the period 1985-2012, we compare location choices of cross-border M&As to that of national M&As. We find that: cross-border M&As are more spatially concentrated than national M&As, that cross-border M&As sort into larger agglomerations across the USA than national M&As, and that for both forms of M&As location specific market access in the USA as well as access to the rest of the world (through transport hubs) are key drivers for target selection.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 5331

Klassifikation
Wirtschaft
Trade: General
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Oligopoly and Other Imperfect Markets
Thema
cross-border mergers and acquisitions
location choice
agglomeration

Ereignis
Geistige Schöpfung
(wer)
Brakman, Steven
Garretsen, Harry
van Marrewijk, Charles
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Brakman, Steven
  • Garretsen, Harry
  • van Marrewijk, Charles
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2015

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