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The Impact of European Integration on the Nineties’ Wave of Mergers and Acquisitions

The Impact of European Integration on the Nineties’ Wave of Mergers and Acquisitions

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The present paper applies a gravity model with fixed country effects to M&A flows on a sample of 1215 pairs of countries over the 1998-2001 period, to test the impact of European integration. That model, which had to our knowledge not been applied to M&A flows so far, allows us to observe that the participation of two countries in the process of European integration is associated with a smaller negative impact of distance on those countries` bilateral M&A flows. We observe no such effect for the EMU however.

Ⅰ. Introduction

Ⅱ. M&As and European Integration in the Nineties: Some Facts

Ⅲ. Methodology and data

Ⅳ. Results

Ⅴ. Conclusion

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