Industry Concentration and Venture Capital Flows around the World

Economics Bulletin, Vol. 40(2), 1216-1231, 2020

Posted: 22 Jul 2020

See all articles by Yan Alperovych

Yan Alperovych

EMLYON Business School

Xavier Mouchette

affiliation not provided to SSRN

Date Written: May 6, 2020

Abstract

This paper explores the relationship between the international venture capital (VC) activity and industry concentration levels in the countries of investors (origins) and those of target companies (destinations). With the international sample of VC transactions covering 65 industries and 67 countries during 1980-2016, we find a significant positive association between the flow of cross-border VC investments and the difference in industrial concentration levels between the origin and destination countries. This result is robust to:

(i) the inclusion of various control variables identified by the extant literature,

(ii) inclusion/exclusion of the US-destined investments, and

(iii) alternative estimation methods.

Keywords: venture capital, international investments, industry concentration

JEL Classification: G24

Suggested Citation

Alperovych, Yan and Mouchette, Xavier, Industry Concentration and Venture Capital Flows around the World (May 6, 2020). Economics Bulletin, Vol. 40(2), 1216-1231, 2020, Available at SSRN: https://ssrn.com/abstract=3639296

Yan Alperovych (Contact Author)

EMLYON Business School ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

Xavier Mouchette

affiliation not provided to SSRN

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