Firm-productivity and cross border merger

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

  • Arijit Mukherjee
  • Umut Erksan Senalp

Related Research Unit(s)

Detail(s)

Original languageEnglish
Journal / PublicationReview of International Economics
Online published5 Nov 2020
Publication statusOnline published - 5 Nov 2020

Abstract

We examine whether higher productivity of a foreign firm increases the incentive for a cross border merger, which is a dominant form of foreign direct investment in recent decades. In line with the empirical evidence, we show that the relationship between productivity of a foreign firm and cross border merger is mixed. We show that the market concentration effect plays an important role in determining the relationship and provides a rationale for a generally ignored empirical evidence showing a negative relationship between firm-productivity and cross border merger. Our results hold under both Cournot and Bertrand competition.

Research Area(s)

  • HORIZONTAL MERGERS, INTERNATIONAL MERGERS, TRADE LIBERALIZATION, ENTRY, FDI, PERFORMANCE, COMPETITION, INVESTMENT, EXPORT, HETEROGENEITY

Citation Format(s)

Firm-productivity and cross border merger. / Mukherjee, Arijit; Senalp, Umut Erksan.

In: Review of International Economics, 05.11.2020.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review