Working Paper: CEPR ID: DP12078
Authors: Christian C. Wolff; Manapol Ekkayokkaya; Pimnipa Foojinphan
Abstract: We study cross-border mergers and acquisitions (M&As) in ten countries in the Indochina region during the period 1993-2015. Countries with a French colonial history showed markedly lower levels of cross-border M&As (value as well as volume) than other countries, whether previously colonized or not. This difference persists even after accounting for the known drivers of cross-border M&A activity, including legal origin, trade openness, and labor cost levels. Together, these findings suggest that the colonial past of a country plays an important role in cross-border M&A activity.
Keywords: Foreign Direct Investment; Colonial History; Southeast Asia
JEL Codes: F54; G15; G34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| French colonial history (F54) | cross-border M&A value (F23) |
| French colonial history (F54) | cross-border M&A volume (F23) |
| French colonial history (F54) | infrastructure conditions (H54) |
| infrastructure conditions (H54) | cross-border M&A value (F23) |
| infrastructure conditions (H54) | cross-border M&A volume (F23) |