Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2009-06-12
Revision-Date: 2009-08-18
Number: 09-053/2
Author-Name: Julia Swart
Author-Email: swart@tinbergen.nl
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Charles van Marrewijk
Author-Workplace-Name: Utrecht University
Title: Cross-Border Mergers & Acquisitions: A Piece of The Natural Resource Curse Puzzle
Abstract: We combine the resource curse literature with the literature on cross-border mergers and acquisitions (M&As) to investigate two hypotheses, namely (i) natural resources wealth: countries with a comparative advantage in natural resources attract more M&As in natural resource intensive sectors and (ii) natural resources dependency: countries with a high natural resources  dependency attract fewer M&As in all sectors. Using the Thomson dataset we test these hypotheses for a sample of 49 African and Latin American countries in the period 1988 - 2007. To test these hypotheses we disaggregate the data in sectors intensive and not intensive in natural resources. We emphasize the distinction between resource dependency and wealth. Both hypotheses were confirmed by our findings. Thus, resource dependency has a “crowding out” effect on M&As in all sectors, and natural resources wealth has a "crowding in" effect on M&As in sectors intensive in natural resources.
Classification-JEL: F23, Q56
Keywords: Gravity Equation, Mergers and Acquisitions, Natural Resources, Resource Curse
File-Url: https://papers.tinbergen.nl/09053.pdf
File-Format: application/pdf
File-Size: 824035 bytes
Handle: RePEc:tin:wpaper:20090053