Title: The economic impacts of Mergers and Acquisitions: modelling and application
Authors: Lafang Wang, Mingyong Lai, Shantong Li, Baojun Zhang
Addresses: School of Economics and Trade, Hunan University, Changsha, 410079, China; School of Public Policy and Management, Tsinghua University, Beijing, 100084, China. ' School of Economics and Trade, Hunan University, Changsha, 410079, China. ' School of Public Policy and Management, Tsinghua University, Beijing, 100084, China; Department of Development Strategy and Regional Economy, Development Research Center of the State Council, Beijing, 100010, China. ' School of Statistics, Hunan University, Changsha, 410079, China
Abstract: This paper presents a dynamic Computable General Equilibrium (CGE) model for China by incorporating the scale economy and imperfect competition into the MCHUGE model. Based on the Cournot equation, we derive a link between the share weighted price-cost mark-up across all firms in industry and the absolute degree of concentration (CRn) index and Hirschman-Herfindahl Index (HHI). Using the extension model, this paper gives an empirical illustration to analyse the impacts of the Chinese steel industry|s Mergers and Acquisitions (M&As) on China|s macro economy and industries.
Keywords: M&As; mergers and acquisitions; industrial concentration; CGE modelling; China; computable general equilibrium; imperfect competition; steel industry.
International Journal of Applied Decision Sciences, 2008 Vol.1 No.3, pp.305 - 322
Published online: 13 Nov 2008 *Full-text access for editors Access for subscribers Purchase this article Comment on this article