Trade liberalization and industrial restructuring through mergers and acquisitions

• 成果类型: Article
• 署名作者: Breinlich, Holger
• 署名单位: University of Essex; University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2008.07.007
• 发表日期: 2008
• 页码: 254-266
• 关键词: Mergers and acquisitions; trade liberalization; Restructuring; international trade; Canada-United States Free Trade Agreement

摘要

This paper analyzes mergers and acquisitions (M&As) as a channel of industrial restructuring after trade liberalization. Using the Canada-United States Free Trade Agreement (CUSFTA) of 1989 as a source of exogenous variation in trade barriers, I show that trade liberalization increased domestic Canadian M&A activity (Canadian firms buying other Canadian firms) by over 70%. There is no robust link between tariff reductions and either domestic U.S. or cross-border M&As. I also Provide evidence that domestic M&As transferred resources from less to more productive firms and that the magnitude of the overall transfer was quantitatively important. (C) 2008 Elsevier B.V. All rights reserved.