Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure
This paper presents evidence on the determinants of cross-border mergers and acquisitions in services sectors. It develops a stylized model of mergers and acquisitions that predicts that the incidence of merger and acquisition deals depends, inter...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19616028/cross-border-mergers-acquisitions-services-role-policy-industrial-structure http://hdl.handle.net/10986/18773 |
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okr-10986-18773 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCOUNTABILITY ACCOUNTING AGRICULTURE AMOUNT OF CAPITAL BANK DEPOSITS BANK POLICY BARRIER BARRIERS TO INVESTMENT BILATERAL TRANSACTIONS BUSINESS SERVICES CAPITAL FLOWS COMMON LEGAL ORIGIN COUNTRY FIXED EFFECTS DATABASE INFORMATION DEREGULATION DERIVATIVE DERIVATIVES DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT POLICY DUMMY VARIABLES DYNAMIC ECONOMIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ESP FINANCIAL DEVELOPMENT FINANCIAL SERVICES FISCAL POLICY FIXED COST FIXED COSTS FOREIGN COMPANY FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN MARKET FOREIGN MARKETS FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT OFFICIALS GROSS DOMESTIC PRODUCT HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOST ECONOMY INBOUND INVESTMENT INCOME GROUPS INDUSTRIAL COUNTRIES INDUSTRIAL STRUCTURE INDUSTRIAL STRUCTURES INNOVATION INSTITUTIONAL FRAMEWORK INSTRUMENT INSURANCE INTANGIBLE INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL ECONOMIES INTERNATIONAL TRADE INVESTING INVESTMENT FLOWS INVESTMENT POLICIES INVESTMENT PROJECTS INVESTMENT RESTRICTIONS KNOWLEDGE ECONOMY LABOR MARKET LACK OF TRANSPARENCY LEGAL PROVISIONS LEGAL SYSTEM LICENSE LICENSES M3 MANUFACTURING MARGINAL COSTS MARKET ACCESS MARKET ENTRY MARKET REFORM MARKET REFORMS MARKET SIZE MERGERS MONOPOLISTIC COMPETITION MULTINATIONAL MULTINATIONALS NETWORKS NPL OPEN ACCESS OPEN COUNTRIES OUTPUT PARTICULAR COUNTRIES PARTICULAR COUNTRY PC PER CAPITA INCOME PHYSICAL DISTANCE POLITICAL ECONOMY POLITICAL STABILITY PRICE INDEXES PRIVATE SECTOR PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROFIT MAXIMIZATION PROTECTION OF INTELLECTUAL PROPERTY PROTECTIONISM REGIONAL INTEGRATION REGIONAL TRADE REGULATORS REGULATORY ENVIRONMENT RESTRICTIVE INVESTMENT POLICIES RESULT RESULTS RETAIL SERVICES RETURN ROLE OF INSTITUTIONS TELECOM TELECOMMUNICATION TELECOMMUNICATIONS TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE PROTECTION TRADING TRADING VOLUMES TRANSACTION TRANSACTIONS COSTS TRANSLATION TRANSPARENCY TREATY TRUST FUND UTILITY FUNCTION UTILITY MAXIMIZATION VALUE ADDED VOICE-OVER-IP WEB WORLD ECONOMY WORLD INVESTMENT REPORT WTO |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING AGRICULTURE AMOUNT OF CAPITAL BANK DEPOSITS BANK POLICY BARRIER BARRIERS TO INVESTMENT BILATERAL TRANSACTIONS BUSINESS SERVICES CAPITAL FLOWS COMMON LEGAL ORIGIN COUNTRY FIXED EFFECTS DATABASE INFORMATION DEREGULATION DERIVATIVE DERIVATIVES DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT POLICY DUMMY VARIABLES DYNAMIC ECONOMIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ESP FINANCIAL DEVELOPMENT FINANCIAL SERVICES FISCAL POLICY FIXED COST FIXED COSTS FOREIGN COMPANY FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN MARKET FOREIGN MARKETS FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT OFFICIALS GROSS DOMESTIC PRODUCT HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOST ECONOMY INBOUND INVESTMENT INCOME GROUPS INDUSTRIAL COUNTRIES INDUSTRIAL STRUCTURE INDUSTRIAL STRUCTURES INNOVATION INSTITUTIONAL FRAMEWORK INSTRUMENT INSURANCE INTANGIBLE INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL ECONOMIES INTERNATIONAL TRADE INVESTING INVESTMENT FLOWS INVESTMENT POLICIES INVESTMENT PROJECTS INVESTMENT RESTRICTIONS KNOWLEDGE ECONOMY LABOR MARKET LACK OF TRANSPARENCY LEGAL PROVISIONS LEGAL SYSTEM LICENSE LICENSES M3 MANUFACTURING MARGINAL COSTS MARKET ACCESS MARKET ENTRY MARKET REFORM MARKET REFORMS MARKET SIZE MERGERS MONOPOLISTIC COMPETITION MULTINATIONAL MULTINATIONALS NETWORKS NPL OPEN ACCESS OPEN COUNTRIES OUTPUT PARTICULAR COUNTRIES PARTICULAR COUNTRY PC PER CAPITA INCOME PHYSICAL DISTANCE POLITICAL ECONOMY POLITICAL STABILITY PRICE INDEXES PRIVATE SECTOR PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROFIT MAXIMIZATION PROTECTION OF INTELLECTUAL PROPERTY PROTECTIONISM REGIONAL INTEGRATION REGIONAL TRADE REGULATORS REGULATORY ENVIRONMENT RESTRICTIVE INVESTMENT POLICIES RESULT RESULTS RETAIL SERVICES RETURN ROLE OF INSTITUTIONS TELECOM TELECOMMUNICATION TELECOMMUNICATIONS TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE PROTECTION TRADING TRADING VOLUMES TRANSACTION TRANSACTIONS COSTS TRANSLATION TRANSPARENCY TREATY TRUST FUND UTILITY FUNCTION UTILITY MAXIMIZATION VALUE ADDED VOICE-OVER-IP WEB WORLD ECONOMY WORLD INVESTMENT REPORT WTO Barattieri, Alessandro Borchert, Ingo Mattoo, Aaditya Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure |
| relation |
Policy Research Working Paper;No. 6905 |
| description |
This paper presents evidence on the
determinants of cross-border mergers and acquisitions in
services sectors. It develops a stylized model of mergers
and acquisitions that predicts that the incidence of merger
and acquisition deals depends, inter alia, on the target
economy's size, industrial structure and investment
policies, as well as on bilateral transactions costs. These
predictions are examined with bilateral merger and
acquisition flow data and detailed information on policy
barriers from a new database of restrictions on services
investment. The analysis finds that: (1) geographical
factors affect mergers and acquisitions in services and
manufacturing similarly but cultural factors affect mergers
and acquisitions in services more than in manufacturing. (2)
Controlling for these bilateral factors, restrictive
investment policies reduce the probability of merger and
acquisition inflows but this negative effect is mitigated in
countries with relatively large shares of manufacturing and
(to a lesser extent) services in gross domestic product. The
same results hold for the number of merger and acquisition
deals received. These findings suggest that the impact of
policy is state-dependent and related to the composition of
gross domestic product in the target economy. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Barattieri, Alessandro Borchert, Ingo Mattoo, Aaditya |
| author_facet |
Barattieri, Alessandro Borchert, Ingo Mattoo, Aaditya |
| author_sort |
Barattieri, Alessandro |
| title |
Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure |
| title_short |
Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure |
| title_full |
Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure |
| title_fullStr |
Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure |
| title_full_unstemmed |
Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure |
| title_sort |
cross-border mergers and acquisitions in services : the role of policy and industrial structure |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/06/19616028/cross-border-mergers-acquisitions-services-role-policy-industrial-structure http://hdl.handle.net/10986/18773 |
| _version_ |
1764442661020762112 |
| spelling |
okr-10986-187732021-04-23T14:03:49Z Cross-Border Mergers and Acquisitions in Services : The Role of Policy and Industrial Structure Barattieri, Alessandro Borchert, Ingo Mattoo, Aaditya ACCOUNTABILITY ACCOUNTING AGRICULTURE AMOUNT OF CAPITAL BANK DEPOSITS BANK POLICY BARRIER BARRIERS TO INVESTMENT BILATERAL TRANSACTIONS BUSINESS SERVICES CAPITAL FLOWS COMMON LEGAL ORIGIN COUNTRY FIXED EFFECTS DATABASE INFORMATION DEREGULATION DERIVATIVE DERIVATIVES DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT POLICY DUMMY VARIABLES DYNAMIC ECONOMIES E-MAIL ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ESP FINANCIAL DEVELOPMENT FINANCIAL SERVICES FISCAL POLICY FIXED COST FIXED COSTS FOREIGN COMPANY FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN MARKET FOREIGN MARKETS FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT OFFICIALS GROSS DOMESTIC PRODUCT HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOST ECONOMY INBOUND INVESTMENT INCOME GROUPS INDUSTRIAL COUNTRIES INDUSTRIAL STRUCTURE INDUSTRIAL STRUCTURES INNOVATION INSTITUTIONAL FRAMEWORK INSTRUMENT INSURANCE INTANGIBLE INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL ECONOMIES INTERNATIONAL TRADE INVESTING INVESTMENT FLOWS INVESTMENT POLICIES INVESTMENT PROJECTS INVESTMENT RESTRICTIONS KNOWLEDGE ECONOMY LABOR MARKET LACK OF TRANSPARENCY LEGAL PROVISIONS LEGAL SYSTEM LICENSE LICENSES M3 MANUFACTURING MARGINAL COSTS MARKET ACCESS MARKET ENTRY MARKET REFORM MARKET REFORMS MARKET SIZE MERGERS MONOPOLISTIC COMPETITION MULTINATIONAL MULTINATIONALS NETWORKS NPL OPEN ACCESS OPEN COUNTRIES OUTPUT PARTICULAR COUNTRIES PARTICULAR COUNTRY PC PER CAPITA INCOME PHYSICAL DISTANCE POLITICAL ECONOMY POLITICAL STABILITY PRICE INDEXES PRIVATE SECTOR PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROFIT MAXIMIZATION PROTECTION OF INTELLECTUAL PROPERTY PROTECTIONISM REGIONAL INTEGRATION REGIONAL TRADE REGULATORS REGULATORY ENVIRONMENT RESTRICTIVE INVESTMENT POLICIES RESULT RESULTS RETAIL SERVICES RETURN ROLE OF INSTITUTIONS TELECOM TELECOMMUNICATION TELECOMMUNICATIONS TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE PROTECTION TRADING TRADING VOLUMES TRANSACTION TRANSACTIONS COSTS TRANSLATION TRANSPARENCY TREATY TRUST FUND UTILITY FUNCTION UTILITY MAXIMIZATION VALUE ADDED VOICE-OVER-IP WEB WORLD ECONOMY WORLD INVESTMENT REPORT WTO This paper presents evidence on the determinants of cross-border mergers and acquisitions in services sectors. It develops a stylized model of mergers and acquisitions that predicts that the incidence of merger and acquisition deals depends, inter alia, on the target economy's size, industrial structure and investment policies, as well as on bilateral transactions costs. These predictions are examined with bilateral merger and acquisition flow data and detailed information on policy barriers from a new database of restrictions on services investment. The analysis finds that: (1) geographical factors affect mergers and acquisitions in services and manufacturing similarly but cultural factors affect mergers and acquisitions in services more than in manufacturing. (2) Controlling for these bilateral factors, restrictive investment policies reduce the probability of merger and acquisition inflows but this negative effect is mitigated in countries with relatively large shares of manufacturing and (to a lesser extent) services in gross domestic product. The same results hold for the number of merger and acquisition deals received. These findings suggest that the impact of policy is state-dependent and related to the composition of gross domestic product in the target economy. 2014-06-25T22:07:28Z 2014-06-25T22:07:28Z 2014-06 http://documents.worldbank.org/curated/en/2014/06/19616028/cross-border-mergers-acquisitions-services-role-policy-industrial-structure http://hdl.handle.net/10986/18773 English en_US Policy Research Working Paper;No. 6905 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |