| Abstract: |
This paper analyses whether the strengthening of intellectual property rights
(IPRs) systems affects decisions of cross-border mergers and acquisitions
(M&As), and whether their influence is different for developed and developing
countries and across industrial sectors. We estimate an extended gravity model
to study bilateral flows of M&As using data for the post-TRIPS period
(1995-2010) and two different indexes that measure the strength of IPRs
systems at the country level. We find that IPRs influence decisions of
cross-border M&As and facilitate the creation of investment linkages. However,
we detect a heterogeneous impact of IPRs on M&As depending on specificities of
countries and sectors. |