Trade Liberalization and the Profitability of Domestic Mergers

Gérard Gaudet () and R. Kanouni

Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ

Abstract: It is often thought that a tariff reduction, by opening up the domestic market to foreign firms, should lessen the need for a policy aimed at discouraging domestic mergers. This implicitly assumes that the tariff in question is sufficently high to prevent foreign firms from selling in the domestic market. However, not all tariffs are prohibitive, so that foreign firms may be present in the domestic market before it is abolished.

Keywords: MERGERS; ANTITRUST LEGISLATION; FREE TRADE (search for similar items in EconPapers)
JEL-codes: G34 G30 K23 F12 (search for similar items in EconPapers)
Date: Written 2001

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Related works:
Working Paper: Trade Liberalization and the Profitability of Domestic Mergers (2001)
Journal Article: Trade Liberalization and the Profitability of Domestic Mergers (2004)
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