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Full-Text Articles in Social and Behavioral Sciences
Growing Through The Merger And Acquisition, Jianhuan Xu
Growing Through The Merger And Acquisition, Jianhuan Xu
Research Collection School Of Economics
The paper studies with an endogenous growth model how the merger and acquisition (M&A) affects the aggregate growth rate. We model the M&A as a capital reallocation process, which can increase both productivity and growth rates of firms. The model is tractable and greatly consistent with patterns observed in the M&A at the micro level. Matching our model to the data, we find that prohibiting the M&A would lead to the reduction of the aggregate growth rate of US economy by 0.1% and the reduction of the aggregate TFP by 5%.
Growing Through The Merger And Acquisition, Jianhuan Xu
Growing Through The Merger And Acquisition, Jianhuan Xu
Research Collection School Of Economics
The paper studies with an endogenous growth model how the merger and acquisition (M&A) affects the aggregate growth rate. We model the M&A as a capital reallocation process, which can increase both productivity and growth rates of firms. The model is tractable and greatly consistent with patterns observed in the M&A at the micro level. Matching our model to the data, we find that prohibiting the M&A would lead to the reduction of the aggregate growth rate of US economy by 0.1% and the reduction of the aggregate TFP by 5%.