Working Paper No. 569

Investment Liberalization - Who Benefits from Cross-Border Mergers & Acquisitons?

Published: December 19, 2001Pages: 39Keywords: Investment Liberalization; FDI; Mergers & Acquisitions; RestructuringJEL-codes: F02; F23; K21; L13; L33; O12

Investment Liberalization - Who Benefits from Cross-Border Mergers & Acquisitons? Pehr-Johan Norbäck and Lars Persson

Investment liberalizing countries are often concerned that cross-border mergers & acquisitions might have an adverse effect on domestic firms and benefit multinational enterprises (MNEs). However, given that domestic assets are sufficiently scarce, we identify a preemption effect and an asset complementarity effect which imply that the acquisition price is substantially higher than the domestic seller's reservation price. The preemption effect also implies that the seller might capture some of the MNEs' initial rents. Moreover, other policies used in times of investment liberalization, such as restructuring, are explained through their effect on the value of the domestic assets.


Pehr-Johan Norbäck


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Lars Persson


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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