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postgraduate thesis: Free trade agreements, trade disputes and cross-border mergers and acquisitions

TitleFree trade agreements, trade disputes and cross-border mergers and acquisitions
Authors
Issue Date2015
PublisherThe University of Hong Kong (Pokfulam, Hong Kong)
Citation
Li, T. [李譚]. (2015). Free trade agreements, trade disputes and cross-border mergers and acquisitions. (Thesis). University of Hong Kong, Pokfulam, Hong Kong SAR. Retrieved from http://dx.doi.org/10.5353/th_b5558982
AbstractThis dissertation consists of two independent essays on the interactions between free trade agreements (FTAs), trade disputes, dispute settlement mechanisms and cross-border mergers and acquisitions (M&As). The first essay investigates the effects of the formation of free trade agreements on trade disputes. We construct a unique and comprehensive dataset on inter-country trade disputes from 1995 to 2007. The dataset covers 110 countries and 1130 trade disputes. We find that the incidences of trade disputes between two countries are positively associated with economic size, economic growth, and trade shares. More importantly, we obtain that FTA relationship between two countries reduces the occurrences of trade disputes between them. We also find that FTAs relying on the WTO dispute settlement mechanism further reduce trade disputes between their members compared to FTAs without explicit provisions on trade dispute settlement. By contrast, the dispute-reducing effect is attenuated in FTAs which have their own dispute settlement mechanism. The main results are robust to the control for possible measurement error and endogeneity problem. In the second essay, we examine the impact of FTA formation on the cross-border mergers and acquisitions. Using the comprehensive M&As dataset of SDC, we find that FTA relationship is associated with more bilateral cross-border M&As and FTA has an investment diversion effect. Second, by exploring the detailed information on acquiring and target firms, we show that FTA relation has larger effect on cross-border M&As between similar countries than diverse countries; and investment diversion effect exists among similar countries. Moreover, though FTA promotes all types of cross-border M&As the investment diversion effect is larger for vertical cross-border M&As. Our results are robust to various measures of M&A activities and econometric methods used.
DegreeDoctor of Philosophy
SubjectInternational trade
Free trade
Dispute resolution (Law)
Consolidation and merger of corporations
Dept/ProgramEconomics and Finance
Persistent Identifierhttp://hdl.handle.net/10722/216243

 

DC FieldValueLanguage
dc.contributor.authorLi, Tan-
dc.contributor.author李譚-
dc.date.accessioned2015-09-08T23:11:31Z-
dc.date.available2015-09-08T23:11:31Z-
dc.date.issued2015-
dc.identifier.citationLi, T. [李譚]. (2015). Free trade agreements, trade disputes and cross-border mergers and acquisitions. (Thesis). University of Hong Kong, Pokfulam, Hong Kong SAR. Retrieved from http://dx.doi.org/10.5353/th_b5558982-
dc.identifier.urihttp://hdl.handle.net/10722/216243-
dc.description.abstractThis dissertation consists of two independent essays on the interactions between free trade agreements (FTAs), trade disputes, dispute settlement mechanisms and cross-border mergers and acquisitions (M&As). The first essay investigates the effects of the formation of free trade agreements on trade disputes. We construct a unique and comprehensive dataset on inter-country trade disputes from 1995 to 2007. The dataset covers 110 countries and 1130 trade disputes. We find that the incidences of trade disputes between two countries are positively associated with economic size, economic growth, and trade shares. More importantly, we obtain that FTA relationship between two countries reduces the occurrences of trade disputes between them. We also find that FTAs relying on the WTO dispute settlement mechanism further reduce trade disputes between their members compared to FTAs without explicit provisions on trade dispute settlement. By contrast, the dispute-reducing effect is attenuated in FTAs which have their own dispute settlement mechanism. The main results are robust to the control for possible measurement error and endogeneity problem. In the second essay, we examine the impact of FTA formation on the cross-border mergers and acquisitions. Using the comprehensive M&As dataset of SDC, we find that FTA relationship is associated with more bilateral cross-border M&As and FTA has an investment diversion effect. Second, by exploring the detailed information on acquiring and target firms, we show that FTA relation has larger effect on cross-border M&As between similar countries than diverse countries; and investment diversion effect exists among similar countries. Moreover, though FTA promotes all types of cross-border M&As the investment diversion effect is larger for vertical cross-border M&As. Our results are robust to various measures of M&A activities and econometric methods used.-
dc.languageeng-
dc.publisherThe University of Hong Kong (Pokfulam, Hong Kong)-
dc.relation.ispartofHKU Theses Online (HKUTO)-
dc.rightsThe author retains all proprietary rights, (such as patent rights) and the right to use in future works.-
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subject.lcshInternational trade-
dc.subject.lcshFree trade-
dc.subject.lcshDispute resolution (Law)-
dc.subject.lcshConsolidation and merger of corporations-
dc.titleFree trade agreements, trade disputes and cross-border mergers and acquisitions-
dc.typePG_Thesis-
dc.identifier.hkulb5558982-
dc.description.thesisnameDoctor of Philosophy-
dc.description.thesislevelDoctoral-
dc.description.thesisdisciplineEconomics and Finance-
dc.description.naturepublished_or_final_version-

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