Cross-border M&A outflows and government size

Ayesha Ashraf

Applied Economics Letters, 2021, vol. 28, issue 11, 964-967

Abstract: This article examines the effect of cross-border mergers and acquisitions (M&A) outflows on government size in home countries. We focus on up to 89 developed and developing economies during the period 1996–2018. The results show that cross-border M&A outflows decrease the government size in total sample as well as in sub-samples of developed and developing countries. The results are stable across different econometric specifications and provide support to the efficiency hypothesis.

Date: 2021
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DOI: 10.1080/13504851.2020.1789056

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