Unlocking the value of cross-border mergers and acquisitions

Arbeitspapier

Most FDI takes place between the developed countries, which suggests that the market-seeking motive is important for understanding FDI. However, given the stylized fact that trade barriers (e.g. transportation costs and financial barriers) have declined over the past 20 years, models that aim to explain market-seeking FDI tend to predict a decline in FDI. Neary (2008) offers two explanations for this puzzle: (1) the export platform motive (where firms gain access to an integrated market by investing in one of the integrated countries); (2) Neary's (2007) GOLE model, which explains cross-border mergers and acquisitions (this model is of interest since most FDI comes in the form of M&As). By using a gravity framework, where we also deal with the zero gravity problem , we confirm the predictions of the GOLE model.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 2294

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade: General ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Economic Integration ; Financial Aspects of Economic Integration ; International Finance Forecasting and Simulation: Models and Applications ; Open Economy Macroeconomics ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Oligopoly and Other Imperfect Markets
• Thema: cross-border M&As ; financial openness ; economic integration ; Direktinvestition ; Fusion ; Übernahme ; Multinationales Unternehmen ; Grenze ; Wirtschaftsintegration ; Globalisierung ; Komparativer Kostenvorteil ; Welt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Brakman, Steven ; Garita, Gus ; Garretsen, Harry ; van Marrewijk, Charles
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/26339
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ