Cross-Border M&A Inflows and the Quality of Institutions: A Cross-Country Panel Data Analysis

Jung Hur (), Rasyad A. Parinduri and Yohanes Eko Riyanto ()

SCAPE Policy Research Working Paper Series from National University of Singapore, Department of Economics, SCAPE

Abstract: This paper provides an empirical explanation to the observed disparity in cross-border M&A inflows to developing and developed countries over the last two decades. We show two main results. First, the disparity can be attributed to the difference in the quality of institutions between the two groups of countries. Second, the gain from reforming institutions in developing countries is smaller than that in developed countries. These findings suggest that, with the current speed of institutional reforms in developing countries, the disparity is likely to persist.

Keywords: cross-border M&A inflows; quality of institutions; developing and developed countries; pooled-data and panel data analysis; correlated random effects (search for similar items in EconPapers)
JEL-codes: C23 F21 G34 O16 O57 (search for similar items in EconPapers)
Date: 2007-03

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