Mergers and Acquisitions & Trade: A Global Value Chains Analysis – The World Economy – article

Mergers and Acquisitions & Trade: A Global Value Chains Analysis

Federico Carril‐Caccia, Elena Pavlova | The World Economy

2019-10-22

The present article deals with how the insertion in international trade and Global Value Chains (GVCs) of countries affect their capacity of attracting foreign Mergers and Acquisitions (M&As). To this end, we combine data for bilateral M&As and trade in value added for the period 2001‐2015 and estimate an augmented gravity equation. Results indicate that trade openness per se does not favour M&As. Nevertheless, bilateral free trade agreements, heterogeneity of destinations (sources) for exports (imports) of intermediate and final goods, and position and participation in global value chains are relevant for explaining bilateral M&As. Moreover, their role is significantly different depending on the level of development of the home and host countries.

Bookmark

Your comment

Scroll to Top