Working Paper: NBER ID: w9279
Authors: Boyan Jovanovic; Peter L. Rousseau
Abstract: We argue that takeovers have played a major role in speeding up the diffusion of new technology. The role that they play is similar to that of entry and exit of firms. We focus on and compare two periods: 1890-1930 during which electricity and the internal combustion engine spread through the U.S. economy, and 1971-2001 . the Information Age.
Keywords: mergers; technology diffusion; reallocation; economic growth
JEL Codes: O3; L2; N8
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Mergers (G34) | Technology Diffusion (O33) |
| Mergers (G34) | Resource Reallocation (Q20) |
| Firm Exit (L19) | Technology Diffusion (O33) |
| Acquisition of Firms (G34) | Technology Utilization (O33) |
| Mergers (G34) | Stock Market Capitalization (G10) |
| Mergers and Firm Entry/Exit (L19) | Technology Diffusion (O33) |