Cross-Border Mergers & Acquisitions: A Piece of The Natural Resource Curse Puzzle
June 2009
Research Paper
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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.
- Q56 : Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity; Population Growth
- F23 : Multinational Firms; International Business
- resource
- m &as
- country
- ***
- sector
- model
- resource dependency
- target
- trade
- dependency
- group
- acquirer
- variable
- result
- latin america
- number
- count
- language
- region
- coefficient
