Cross-Border Mergers and Acquisitions in Services: The Role of Policy and Industrial Structure

Alessandro Barattieri, Ingo Borchert and Aaditya Mattoo

No 438, Carlo Alberto Notebooks from Collegio Carlo Alberto

Abstract: This paper explores the role of policy and economic structure in determining interna- tional mergers and acquisitions (M&A) in services sectors. The analysis is based on bilateral sectoral M&A ow data and detailed information on policy barriers from a new database. Restrictive investment policies are found to reduce the probability of M&A in ows, 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.

Keywords: Cross-border M&A; services trade policy; trade frictions (search for similar items in EconPapers)
JEL-codes: F13 F21 L80 (search for similar items in EconPapers)
Pages: pages 42
Date: 2015
New Economics Papers: this item is included in nep-ind, nep-int and nep-ure
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https://www.carloalberto.org/wp-content/uploads/2018/11/no.438.pdf (application/pdf)

Related works:
Journal Article: Cross-border mergers and acquisitions in services: The role of policy and industrial structure (2016)
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 (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cca:wpaper:438

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