Working Paper No. 743

Cross-Border Mergers & Acquisitions Policy in Service Markets

Published: April 8, 2008Pages: 39Keywords: Services; Mergers and Acquisitions; Investment Liberalization; Foreign Direct Investments; OwnershipJEL-codes: F23; K21; L13; O12

Cross-Border Mergers & Acquisitions Policy in Service Markets Pehr-Johan Norbäck and Lars Persson

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 M&A 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.


Pehr-Johan Norbäck


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Lars Persson


Ph: +46 8 665 4504

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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