DP12078 Cross-Border Mergers and Acquisitions: Evidence from the Indochina Region
|Author(s):||Manapol Ekkayokkaya, Pimnipa Foojinphan, Christian C Wolff|
|Publication Date:||June 2017|
|Keyword(s):||colonial history, Foreign direct investment, South-East Asia|
|JEL(s):||F54, G15, G34|
|Programme Areas:||Financial Economics, International Trade and Regional Economics, Development Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=12078|
We study cross-border mergers and acquisitions (M&As) in ten countries in the Indochina region during the period 1993-2015. Countries with a French colonial history showed markedly lower levels of cross-border M&As (value as well as volume) than other countries, whether previously colonized or not. This difference persists even after accounting for the known drivers of cross-border M&A activity, including legal origin, trade openness, and labor cost levels. Together, these findings suggest that the colonial past of a country plays an important role in cross-border M&A activity.