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Title Cross-Border Mergers & Acquisitions: A Piece of The Natural Resource Curse Puzzle
Full text http://hdl.handle.net/1765/16302
Date 2009
Author(s) Swart, J.; Marrewijk, J.G.M. van
Abstract We combine the resource curse literature with the literature on cross-border mergers and acquisitions (M&As) to investigate two hypotheses, namely (i) countries with a comparative advantage in natural resources attract more M&As in natural resource intensive sectors and (ii) countries with a high natural resource dependency attract fewer M&As in other sectors. Using the Thomson dataset we test these hypotheses for a sample of 49 African and Latin American countries in the period 1988 - 2007. Both hypotheses were confirmed by our findings. Thus, resource dependency has a "crowding out" effect on M&As in sectors not intensive in natural resources, and a comparative advantage in natural resources has a "crowding in" effect on M&As in sectors intensive in natural resources.
Subject(s) F23; Q56; gravity equation; mergers and acquisitions; natural resources; resource curse
Language en
Publisher Tinbergen Institute
Type of publication Research paper
Source Tinbergen Institute Discussion Paper 2009-053/2
Identifier 0929-0834
Repository Rotterdam - Erasmus University
Added to C-A: 2012-02-14;12:35:30