2006–2010

Cross-Border Mergers & Acquisitions Policy in Service Markets

Reprint No. 2008:37

Author(s): Pehr-Johan Norbäck and Lars PerssonYear: 2008 Title: Journal of Industry, Competition and Trade Volume (No.): 8 (3-4) Pages: 269–293


We provide facts showing that in service markets: (i) restrictions on foreign direct investment (FDI) are under reform, (ii) cross-border Mergers & Acquisitions dominate as the entry mode of FDI, and (iii) there is often a high market concentration. Based on these facts, we present a model for analyzing cross-border merger and acquisition policy in liberalized service markets taking into account efficiency and market power effects. Our findings suggest that a merger policy, but not a discriminatory policy towards foreigners, seems warranted. Moreover, policies ensuring competition for domestic target firms seem warranted. In this vein, harmonization of the EU takeover regulations may particularly benefit assets owners in countries with many target firms.


Reference:
Norbäck, Pehr-Johan and Lars Persson (2008), "Cross-Border Mergers & Acquisitions Policy in Service Markets". Journal of Industry, Competition and Trade 8(3-4), 269–293.

Pehr-Johan Norbäck

Contact

Ph: +46 8 665 4522
Mob: +46 73 547 3379
pehr-johan.norback@if...

Lars Persson

Contact

Ph: +46 8 665 4504
lars.persson@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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