Mergers and Economies of Scale: Volkswagen AG 1976 - 2000

Niklas Rudholm (niklas.rudholm@hui.se)
Additional contact information
Niklas Rudholm: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, 103 29 Stockholm, Sweden

No 4, HUI Working Papers from HUI Research

Abstract: The purpose of this paper is to study if the acquisitions of the SEAT and Skoda has lead to increased economic efficiency for Volkswagen AG due to economies of scale. This is achieved by estimation of the VAG cost function, using a translog specification. The results indicate that the merger with SEAT did increase the economies of scale available as production volumes increased due to the merger. No such effects was, however, found for the aquisition of Skoda.

Keywords: Automobile production; economies of scale; technological change (search for similar items in EconPapers)
JEL-codes: D21 D24 L25 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2006-10-01
New Economics Papers: this item is included in nep-com, nep-eff, nep-his, nep-ind and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Rudholm, Niklas, 'Mergers and Economies of Scale: Volkswagen AG 1976 - 2000' in ICFAI Journal of Mergers and Acquisitions, 2007, pages 79-90.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:huiwps:0004

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