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

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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.
Autores principais:Lommerud, Kjell Erik
Outros Autores:Meland, Frode; Straume, Odd Rune
Assunto:Cross-border merger National champions Greenfield FDI Trade unions
Ano:2008
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade do Minho
Idioma:inglês
Origem:RepositóriUM - Universidade do Minho
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author Lommerud, Kjell Erik
author2 Meland, Frode
Straume, Odd Rune
author2_role author
author
author_facet Lommerud, Kjell Erik
Meland, Frode
Straume, Odd Rune
author_role author
contributor_name_str_mv RepositóriUM - Universidade do Minho
country_str PT
creators_json_txt [{\"Person.name\":\"Lommerud, Kjell Erik\"},{\"Person.name\":\"Meland, Frode\"},{\"Person.name\":\"Straume, Odd Rune\"}]
datacite.contributors.contributor.contributorName.fl_str_mv RepositóriUM - Universidade do Minho
datacite.creators.creator.creatorName.fl_str_mv Lommerud, Kjell Erik
Meland, Frode
Straume, Odd Rune
datacite.date.Accepted.fl_str_mv 2008-03-01T00:00:00Z
datacite.date.available.fl_str_mv 2008-03-31T17:06:19Z
datacite.date.embargoed.fl_str_mv 2008-03-31T17:06:19Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Cross-border merger
National champions
Greenfield FDI
Trade unions
datacite.titles.title.fl_str_mv Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
dc.contributor.none.fl_str_mv RepositóriUM - Universidade do Minho
dc.creator.none.fl_str_mv Lommerud, Kjell Erik
Meland, Frode
Straume, Odd Rune
dc.date.Accepted.fl_str_mv 2008-03-01T00:00:00Z
dc.date.available.fl_str_mv 2008-03-31T17:06:19Z
dc.date.embargoed.fl_str_mv 2008-03-31T17:06:19Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv https://hdl.handle.net/1822/7758
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Cross-border merger
National champions
Greenfield FDI
Trade unions
dc.title.fl_str_mv Mergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_8042
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.
dirty 0
eu_rights_str_mv openAccess
format workingPaper
fulltext.url.fl_str_mv https://repositorium.uminho.pt/bitstreams/316617d0-e978-495e-8bb0-35366b840e1e/download
id rum_e0cdceaec0b470520c484fb77db237be
identifier.url.fl_str_mv https://hdl.handle.net/1822/7758
instacron_str repositorium
institution Universidade do Minho
instname_str Universidade do Minho
language eng
network_acronym_str rum
network_name_str RepositóriUM - Universidade do Minho
oai_identifier_str oai:repositorium.uminho.pt:1822/7758
organization_str_mv urn:organizationAcronym:repositorium
person_str_mv Lommerud, Kjell Erik
Meland, Frode
Straume, Odd Rune
publishDate 2008
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
reponame_str RepositóriUM - Universidade do Minho
repository_id_str urn:repositoryAcronym:rum
service_str_mv urn:repositoryAcronym:rum
spelling engUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)engMany 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.application/pdfengMergers and capital flight in unionised oligopolies: Is there scope for a 'national champion' policy?Lommerud, Kjell ErikMeland, FrodeStraume, Odd RuneHostingInstitutionOrganizationalRepositóriUM - Universidade do Minhoe-mailmailto:repositorium@usdb.uminho.ptrepositorium@usdb.uminho.ptCITATIONNIPE Working Paper series; 102008-03-31T17:06:19Z2008-032008-03-01T00:00:00ZHandlehttps://hdl.handle.net/1822/7758http://purl.org/coar/access_right/c_abf2open accessCross-border mergerNational championsGreenfield FDITrade unions456656 bytesother research producthttp://purl.org/coar/resource_type/c_8042working paperhttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorium.uminho.pt/bitstreams/316617d0-e978-495e-8bb0-35366b840e1e/download
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
status SINGLETON
subject.fl_str_mv Cross-border merger
National champions
Greenfield FDI
Trade unions
title 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_short 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?
topic Cross-border merger
National champions
Greenfield FDI
Trade unions
topic_facet Cross-border merger
National champions
Greenfield FDI
Trade unions
url https://hdl.handle.net/1822/7758
visible 1