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

Alessandro Barattieri, Ingo Borchert and Aaditya Mattoo

Canadian Journal of Economics, 2016, vol. 49, issue 4, 1470-1501

Abstract: 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.

JEL-codes: F13 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Cross‐border mergers and acquisitions in services: The role of policy and industrial structure (2016)
Working Paper: Cross-Border Mergers and Acquisitions in Services: The Role of Policy and Industrial Structure (2015)
Working Paper: Cross-border mergers and acquisitions in services: the role of policy and industrial structure (2014)
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