 Does the participation to global value chains impact on cross-border mergers and acquisitions?Maria Cipollina, Filomena Pietrovito () and Alberto Pozzolo No 459, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano Abstract: Global value chains (GVCs) are a major feature of globalization, with a strong impact on the patterns of international trade. In this paper we take the analysis one step forward, studying the impact of GVCs on cross-border mergers and acquisitions (M&As). We test the two symmetric hypotheses that a higher degree of participation in GVCs of a supplier sector to the exports of a user sector (e.g., the assembly in China of cell-phones eventually exported to US and, in turn, to the rest of the world) encourages: (i) firms in the user sector to acquire foreign participations in the supplier sector; and (ii) firms in the supplier sector to acquire foreign participations in the user sector. Our analysis is based on a unique dataset covering 12 supplier and user sectors, for over 22 investor countries and 47 target countries between 1995 and 2010. Estimating an augmented gravity equation model of cross-border M&As, inflated with a large number of bilateral sector and country fixed effects, we find strong support that a higher GVC participation has a positive impact on the size of M&As in both the user and the supplier sectors. Keywords: Global Value Chains; Mergers and Acquisitions; Sector level (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:459 Access Statistics for this paper More papers in Development Working Papers from Centro Studi Luca d'Agliano, University of Milano Contact information at EDIRC. |
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