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Cross-border mergers and acquisitions in services: the role of policy and industrial structure

journal contribution
posted on 2023-06-08, 23:42 authored by Alessandro Barattieri, Ingo BorchertIngo Borchert, Aaditya Mattoo
This paper explores the role of policy and economic structure in determining international mergers and acquisitions (M&A) in services sectors. The analysis is based on bilateral sectoral M&A flow data and detailed information on policy barriers from a new database. Restrictive investment policies are found to reduce the probability of M&A inflows, controlling for bilateral frictions such as geography. This negative effect, however, is mitigated in countries with relatively large shares of manufacturing and (to a lesser extent) services in GDP. The same result holds for the number of M&A deals concluded. Findings are robust to accounting for the potential endogeneity of policy restrictiveness. The evidence suggests that the impact of policy is state-dependent and related to the composition of GDP in the target economy.

History

Publication status

  • Published

Journal

Canadian Journal of Economics

ISSN

0008-4085

Publisher

Wiley

Issue

4

Volume

49

Page range

1470-1501

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2015-12-08

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