Do Intellectual Property Rights Influence Cross-Border Mergers and Acquisitions?

LEM Working Paper Series No. 2016/28

28 Pages Posted: 7 Jul 2016 Last revised: 24 Oct 2016

See all articles by Mercedes Campi

Mercedes Campi

CONICET. University of Buenos Aires, Faculty of Economics. Instituto Interdisciplinario de Economía Política de Buenos Aires, IIEP-Baires

Marco Dueñas

affiliation not provided to SSRN

Matteo Barigozzi

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES); London School of Economics and Political Science; University of Bologna

Giorgio Fagiolo

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Date Written: October 21, 2016

Abstract

This paper analyses whether the strengthening of intellectual property rights (IPRs) systems affects decisions of cross-border mergers and acquisitions (M&As), and if their influence is different for developed and developing countries, and across industrial sectors. We estimate an extended gravity model to study bilateral number of M&As using data for the post-TRIPS period (1995-2010) and two different indexes that measure the strength of IPRs systems at the country level. We find that IPRs influence decisions of cross-border M&As in all the sectors of different technological content. Furthermore, a strengthening of IPRs leads to a larger increase of M&As in developing countries than in developed countries. This calls the attention on the possible implications for least developed economies.

Keywords: Intellectual Property Rights, Mergers and Acquisitions, Technological Intensity, Gravity Model

JEL Classification: O34, G34, O13, O14

Suggested Citation

Campi, Mercedes and Dueñas, Marco and Barigozzi, Matteo and Barigozzi, Matteo and Barigozzi, Matteo and Fagiolo, Giorgio, Do Intellectual Property Rights Influence Cross-Border Mergers and Acquisitions? (October 21, 2016). LEM Working Paper Series No. 2016/28, Available at SSRN: https://ssrn.com/abstract=2805067 or http://dx.doi.org/10.2139/ssrn.2805067

Mercedes Campi (Contact Author)

CONICET. University of Buenos Aires, Faculty of Economics. Instituto Interdisciplinario de Economía Política de Buenos Aires, IIEP-Baires ( email )

Av. Córdoba 2122 - 2
Buenos Aires, C1120 AAQ
Argentina

HOME PAGE: http://mercedescampi.wordpress.com

Marco Dueñas

affiliation not provided to SSRN

Matteo Barigozzi

University of Bologna ( email )

Piazza Scaravilli 2
Bologna, 40100
Italy

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium

HOME PAGE: http://www.barigozzi.eu/research.html

London School of Economics and Political Science ( email )

Houghton Street
London, England WC2A 2AE
United Kingdom

Giorgio Fagiolo

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta', 33-I-56127
Pisa
Italy

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