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Arijit Mukherjee
''Cross-border merger and domestic welfare''
( 2006, Vol. 6 No.16 )
We consider the welfare effect of cross-border merger in presence of international R&D competition. Cross-border merger increases domestic welfare if the bargaining power of the foreign firm and the slope of the marginal cost of R&D are sufficiently low. Otherwise, domestic welfare is lower under cross-border merger.
JEL: F1 - Trade: General
O2 - Development Planning and Policy: General
Manuscript Received : Oct 23 2006 Manuscript Accepted : Nov 14 2006

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