Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?

Detalhes bibliográficos
Autor(a) principal: Lommerud, Kjell Erik
Data de Publicação: 2008
Outros Autores: Meland, Frode, Straume, Odd Rune
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/7758
Resumo: Many policy makers seem to prefer domestic alternatives to cross-broder mergers. Can such sentiments make sense? We contruct a model where cross-border mergers drive down union-set wages, where domestic mergers have larger non-labour cost synergies than international ones, and where policy evaluators care more about workers than capital owners. Apparently, the stage is set for national champion policies to be sensible. However, we also introduce the possibility of capital flight in the sense that a domestic firm can physically move its production out of the country. Restrictive cross-border merger policies can then seriously backfire, since they do not necessarily bring about a domestic merger - but capital flight instead.
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spelling Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?Cross-border mergerNational championsGreenfield FDITrade unionsMany policy makers seem to prefer domestic alternatives to cross-broder mergers. Can such sentiments make sense? We contruct a model where cross-border mergers drive down union-set wages, where domestic mergers have larger non-labour cost synergies than international ones, and where policy evaluators care more about workers than capital owners. Apparently, the stage is set for national champion policies to be sensible. However, we also introduce the possibility of capital flight in the sense that a domestic firm can physically move its production out of the country. Restrictive cross-border merger policies can then seriously backfire, since they do not necessarily bring about a domestic merger - but capital flight instead.NIPE – Núcleo de Investigação em Políticas Económicas – is supported by the Portuguese Foundation for Science and Technology through the Programa Operacional Ciência e Inovação 2010 (POCI 2010) of the III Quadro Comunitário de Apoio (QCA III), which is financed by FEDER and Portuguese funds.Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)Universidade do MinhoLommerud, Kjell ErikMeland, FrodeStraume, Odd Rune2008-032008-03-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/7758engNIPE Working Paper series; 10info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:45:06Zoai:repositorium.sdum.uminho.pt:1822/7758Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:42:54.462313Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
title Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
spellingShingle Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
Lommerud, Kjell Erik
Cross-border merger
National champions
Greenfield FDI
Trade unions
title_short Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
title_full Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
title_fullStr Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
title_full_unstemmed Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
title_sort Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
author Lommerud, Kjell Erik
author_facet Lommerud, Kjell Erik
Meland, Frode
Straume, Odd Rune
author_role author
author2 Meland, Frode
Straume, Odd Rune
author2_role author
author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Lommerud, Kjell Erik
Meland, Frode
Straume, Odd Rune
dc.subject.por.fl_str_mv Cross-border merger
National champions
Greenfield FDI
Trade unions
topic Cross-border merger
National champions
Greenfield FDI
Trade unions
description Many policy makers seem to prefer domestic alternatives to cross-broder mergers. Can such sentiments make sense? We contruct a model where cross-border mergers drive down union-set wages, where domestic mergers have larger non-labour cost synergies than international ones, and where policy evaluators care more about workers than capital owners. Apparently, the stage is set for national champion policies to be sensible. However, we also introduce the possibility of capital flight in the sense that a domestic firm can physically move its production out of the country. Restrictive cross-border merger policies can then seriously backfire, since they do not necessarily bring about a domestic merger - but capital flight instead.
publishDate 2008
dc.date.none.fl_str_mv 2008-03
2008-03-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/7758
url http://hdl.handle.net/1822/7758
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv NIPE Working Paper series; 10
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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