Cross-Border Merger and Acquisitions in French Colonies: Evidence from Indochina region
Post by MSF Chula at Tuesday, 19 September 2017 06:17 PM

This study examines the impact of the colonization to the countries under its colonies in terms of the economic impact after its colonization era. Colonization was widely established by many countries, especially in Europe, to expand its power on a global scale. Colonization brought along both positive as well as negative impacts, which still remain for years after the colonizers left its colonized countries, and some has even shaped how the countries are today. This study, therefore, investigates the economic impact to the colonized countries under the French colonies compare to the non-French colonies (British, Dutch, Spanish, and Sovereign) through the FDI, using cross border M&A as the proxy, in the Indochina region. The samples consist of 2,454 M&A deals from 1993-2015 in the French and non-French colonized countries. The result shows that the M&A volume of the French colonies is significantly lower than other non-French colonies. In addition, for robustness check using both OLS estimation and Tobit model regression, the results also shows that the M&A volume of the French colonies is significantly lower than the M&A volume of non-French colonies. This could be concluded that French colonies left poor institution to its colonized countries which then lead to a poorer economic in today‟s era.

Last updated at Tuesday, 19 September 2017 06:17 PM