XIE Jianguo;ZHOU Yuting
Department of International Economics and Trade, Nanjing University;Department of International Economics and Trade,Nanjing University
Using the cross-border M&As data of Chinese enterprises among 116 countries and regions from 2000 to 2017, this paper studies the impacts of regional trade agreements and trade liberalization on the intentions of Chinese enterprises to conduct cross-border M&As. The study finds that FTAs signed between China and trade partners has the “contracting effect,” which would increase the number of M&As of Chinese enterprises by 110%. However, the continuous effect of such effect is decreasing year by year and is more significant among the labor-intensive and non-state-owned enterprises. The study also shows that FTAs have a “spillover effect” brought by the newcomers of the agreements. But its effect is limited, which will increase M&As in the original contracting states (regions) by just 2%. Further empirical study shows that FTAs restrain the cross-border M&As between Chinese enterprises and non-signatories as well as other contracting states. In conclusion, trade liberalization facilitates cross-border M&As of Chinese enterprises and is one of the most important influencing factors and approaches for Chinese enterprises’ globalization.
cross-border mergers and acquisitions;trade liberalization;free trade agreements;contracting effects
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