Born to Be Global and the Globalisation Process

18 Pages Posted: 8 May 2014

See all articles by Pehr‐Johan Norbäck

Pehr‐Johan Norbäck

Research Institute of Industrial Economics (IFN)

Lars Persson

Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Date Written: May 2014

Abstract

During the last decades, we have witnessed a large number of entrepreneurial firms that reach the world market at a fast pace (‘born global firms’). Our analysis suggests that the ongoing globalisation process indeed implies that born to be global firms would be more prominent in the world economy due to the reduction in the cost of exploiting good business ideas globally. However, our analysis also suggests that entrepreneurial firms have incentives to sell their business to incumbents. Indeed, we show that ‘born to be sold global firms’ can be even more frequent as a result of trade liberalisation and the international deregulation of the market for corporate control.

Suggested Citation

Norbäck, Pehr‐Johan and Persson, Lars, Born to Be Global and the Globalisation Process (May 2014). The World Economy, Vol. 37, Issue 5, pp. 672-689, 2014. Available at SSRN: https://ssrn.com/abstract=2434342 or http://dx.doi.org/10.1111/twec.12132

Pehr‐Johan Norbäck (Contact Author)

Research Institute of Industrial Economics (IFN)

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Lars Persson

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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