Domestic versus Cross-Border Acquisitions: Which Impact on the Target Frims' Performance?

This paper investigates the effects of horizontal acquisitions on the performance of target firms in the 1990's. Using French manufacturing firm-level data, we examine two main indicators of performance: the profit and the productive efficieny. We distinguish domestic from cross-in-difference estimation techniques associated to a matching propensity score procedure. We find that M&A do not increase the profit of French target firms. These results suggest that firms probably redistribute efficiency gains at the upstream and/or downstream production stage. There is no evidence of an increase in market power. In addition, the consequences of domestic and cross-border M&A significantly differ. Efficiency gains are stronger for cross-border M&A. This conclusion is however true only for extra-Europan Union operations. The achievement in the European economic integrtion certainly explains the absence of difference between European and domestic acquisitions. Finally, our results cast some doubt on the frequent discrimination attitude towards foreign takeovers and the fears of their impact on firms' performance and the hos country's welfare

Domestic versus Cross-Border Acquisitions: Which Impact on the Target Frims' Performance?

This paper investigates the effects of horizontal acquisitions on the performance of target firms in the 1990's. Using French manufacturing firm-level data, we examine two main indicators of performance: the profit and the productive efficieny. We distinguish domestic from cross-in-difference estimation techniques associated to a matching propensity score procedure. We find that M&A do not increase the profit of French target firms. These results suggest that firms probably redistribute efficiency gains at the upstream and/or downstream production stage. There is no evidence of an increase in market power. In addition, the consequences of domestic and cross-border M&A significantly differ. Efficiency gains are stronger for cross-border M&A. This conclusion is however true only for extra-Europan Union operations. The achievement in the European economic integrtion certainly explains the absence of difference between European and domestic acquisitions. Finally, our results cast some doubt on the frequent discrimination attitude towards foreign takeovers and the fears of their impact on firms' performance and the hos country's welfare.Multinational Firms; Foreign Direct Investment; Mergers and Acquisitions; Take-Overs; Firms' Performance

Is the road to regional integration paved with pollution convergence?

This paper evaluates the impact of free trade agreements (FTAs) on carbon dioxide emissions convergence for a cross-section of 182 countries over the period 1980 to 2008, paying particular attention to Mediterranean and European Union countries. In order to overcome the endogeneity problem of the FTA variable, a propensity score matching approach is first used to match country pairs. Next the convergence properties of relative CO2 emissions are examined for the whole panel and for the matched sample using difference-in-difference techniques. The main results indicate that CO2 emissions of the pairs of countries that belong to an FTA tend to converge, and do so at a higher rate for more advanced integration agreements. In particular, we find that emissions converge more rapidly for NAFTA and EU-27 countries than for Euro-Med countries.Pollution haven hypothesis, convergence, CO2 emissions, Euro-med Agreements, difference-in-difference.

Globalization, Fragmentation and Intra-Firm trade

What are the theoretical determinants of intra-firm trade between identical countries? This paper focuses on firm and sectorial characteristics to state that this pattern of trade can be associated to low level of intermediate goods trade costs compared with those on final goods and markups imposed by upstream local producers, and multinational firms' technological structure such that scale economies are at the firm-level for downstream sector and plant-level for upstream one.

Forecasting Inflation in Tunisia Using Dynamic Factors Model

This work presents a forecasting inflation model using a monthly database. Conventional models for forecasting inflation use a small number of macroeconomic variables. In the context of globalization and dependent economic world, models have to account a large number of information. This model is the goal of recent research in the various industrialized countries as well as developing countries. With Dynamic Factors Model the forecast values are closer to actual inflation than those obtained from conventional models in the short term. In our research we devise the inflation in to “free inflation and administered inflation” and we test the performance of the DFM in different types of inflation namely administered and free inflation. We found that dynamic factors model leads to substantial forecasting improvements over simple benchmark regressions

Forecasting Inflation in Tunisia Using Dynamic Factors Model

This work presents a forecasting inflation model using a monthly database. Conventional models for forecasting inflation use a small number of macroeconomic variables. In the context of globalization and dependent economic world, models have to account a large number of information. This model is the goal of recent research in the various industrialized countries as well as developing countries. With Dynamic Factors Model the forecast values are closer to actual inflation than those obtained from conventional models in the short term. In our research we devise the inflation in to “free inflation and administered inflation” and we test the performance of the DFM in different types of inflation namely administered and free inflation. We found that dynamic factors model leads to substantial forecasting improvements over simple benchmark regressions

Democratic transition and foreign direct investment: Transition process matters

This paper provides evidence on the relationship between foreign direct investment (FDI) and democratic transition. We propose first an econometric analysis of the determinants of the democratization process through a "probit" model. We consider a sample of 173 countries, with 44 that have experienced a democratic transition over the period 1980-2010. Our results reveal that variables related to human development and individual freedom facilitate the initiation of the democratic process in contrast to those related to social heterogeneity. In the second part, we study the impact of the democratic transition on FDI inflows. In order to avoid endogeneity, we limit the analysis to countries in transition and similar ones deduced from a matching process carried out after the first part. Our results confirm that democratic transitions lead to a significant increase in FDI inflow

Forecasting Inflation in Tunisia into instability: Using Dynamic Factors Model a two-step based on Kalman filtering

This work presents a forecasting inflation model using a monthly database. Conventional models for forecasting inflation use a small number of macroeconomic variables. In the context of globalization and dependent economic world, models have to account a large number of information. This model is the goal of recent research in the various industrialized countries as well as developing countries. With Dynamic Factors Model the forecast values are closer to actual inflation than those obtained from conventional models in the short term. In our research we devise the inflation in to “free inflation and administered inflation” and we test the performance of the DFM into instability (before and after revolution) in different types of inflation and trend inflation namely administered and free inflation. We found that dynamic factors model with factor instability leads to substantial forecasting improvements over dynamic factor model without instability factor in period after revolution

Forecasting Inflation in Tunisia into instability: Using Dynamic Factors Model a two-step based on Kalman filtering

This work presents a forecasting inflation model using a monthly database. Conventional models for forecasting inflation use a small number of macroeconomic variables. In the context of globalization and dependent economic world, models have to account a large number of information. This model is the goal of recent research in the various industrialized countries as well as developing countries. With Dynamic Factors Model the forecast values are closer to actual inflation than those obtained from conventional models in the short term. In our research we devise the inflation in to “free inflation and administered inflation” and we test the performance of the DFM into instability (before and after revolution) in different types of inflation and trend inflation namely administered and free inflation. We found that dynamic factors model with factor instability leads to substantial forecasting improvements over dynamic factor model without instability factor in period after revolution