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Does the origin matter? The effects of cross-border mergers and acquisitions in France

Federico Carril-Caccia (Department of Economic Theory and History, Facultad de Ciencias Economicas y Empresariales, Universidad de Granada, Granada, Spain) (Department of Economics, Deusto Business School, Bilbao, Spain)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 20 July 2020



The present article analyses the effects of cross-border mergers and acquisitions (CBM&As) on targets' total factor productivity (TFP), employment, wages and intangible-asset investment. The author investigates whether the impact of CBM&As differs depending on the origin of the investing multinational (MNE). The author distinguishes between CBM&As from European countries, other developed countries and emerging countries.


The author makes use of a unique firm-level data set of foreign direct investment in the French manufacturing sector. The authors applies propensity score matching and difference in differences to estimate the effect of CBM&As.


The results show that the consequences of CBM&As differ strongly depending on the origin. CBM&As from European MNEs have a positive impact on TFP, wages and intangible-asset investment, and those from emerging countries seem to increase wages and intangible-asset investments. In contrast, CBM&As that originate from MNEs from other developed countries do not have a significant effect.


This article contributes to the growing literature on the effects of foreign direct investment that highlights the relevance of accounting for the MNEs' origin. In particular, it is the first to address the impact of emerging-country MNEs' CBM&As in Europe.



The author would like to thank support from his PhD supervisors Juliette Milgram Baleix and Jordi Paniagua. In addition, the author would like to thank María García-Vega and Marco Sanfilippo for their comments and help in the correct application of the used methodology in this paper. In addition, this article has benefited from very helpful comments from from Salvador Barrios, Silvio Esteve-Pérez, Teresa García Muñoz, Olivier Godart, Mikhail Klimenko, Asier Minondo, Ana Isabel Moro Egido, Franciso Requena and six anonymous reviewers. Finally, the author would like to acknowledge the financial support from the Project SEJ 340 from Junta de Andalucía and the Project GV/2017/052 from Generalitat Valenciana.


Carril-Caccia, F. (2020), "Does the origin matter? The effects of cross-border mergers and acquisitions in France", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print.



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