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Journal of Quantitative Economics

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28.11.2016 | Original Article

Competition or Comparative Advantage: What Drives Cross Border Mergers and Acquisitions?

verfasst von: Poonam Mehra Singh

Erschienen in: Journal of Quantitative Economics | Ausgabe 3/2017

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Abstract

The theory of comparative advantage explains the upsurge of cross border mergers and acquisitions (CBMAs) in the era of reform led trade liberalization. This paper tests the theory of comparative advantage for CBMAs by firms belonging to a developing country, viz. India. Using count data the paper also shows that CBMAs have occurred in country and sector specific waves. This implies in developing countries, it is competition rather than comparative advantage which drives CBMAs. However, the paper finds that occurrence of the country specific wave and sector specific wave are negatively affected by favourable outward FDI policy.

Vorheriger Artikel A New Sufficient Condition for a Berge Equilibrium to be a Berge–Vaisman Equilibrium

Nächster Artikel Improvement of a Bio-Economic Mathematical Programming Model in the Case of On-Farm Source Inputs and Outputs

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Results for 2003 are not reported. They are available from the author on request.

Results are available from the author on request.

Results available from the author on request.

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Titel: Competition or Comparative Advantage: What Drives Cross Border Mergers and Acquisitions?
verfasst von: Poonam Mehra Singh
Publikationsdatum: 28.11.2016
Verlag: Springer India
Erschienen in: Journal of Quantitative Economics / Ausgabe 3/2017
Print ISSN: 0971-1554
Elektronische ISSN: 2364-1045
DOI: https://doi.org/10.1007/s40953-016-0063-2

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