IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0765.html
   My bibliography  Save this article

Regional Integration and Cross-Border Mergers and Acquisitions in Africa

Author

Listed:
  • Wilson, Magdalene Kasyoka

    (University of Johannesburg, Johannesburg, South Africa)

  • Bala, Alain Pholo

    (University of Johannesburg, Johannesburg, South Africa)

Abstract

This study uses a structural gravity model to examine how regional integration affected cross-border mergers and acquisitions (M&As) in Africa during the period from 2000 to 2014. We found that customs unions in Africa, specifically the Southern Africa Customs Union (SACU) and the East African Community (EAC) were significant drivers of M&As by firms within the unions but not for those outside the unions, perhaps the result of the relatively small size of these economic blocs. The Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community (SADC) do not appear to encourage either intra- or extra- regional M&A flows. These findings suggest that the depth of regional integration determines intra-regional M&A flows in Africa. Therefore, African governments should strengthen existing economic integration agreements to benefit more from cross-border M&A flows from within the regional blocs and to attract foreign investment from non-member countries.

Suggested Citation

  • Wilson, Magdalene Kasyoka & Bala, Alain Pholo, 2019. "Regional Integration and Cross-Border Mergers and Acquisitions in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(1), pages 109-132.
    • Handle: RePEc:ris:integr:0765
    as

    Download full text from publisher

    File URL: http://www.e-jei.org
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yamlaksira S. Getachew & Roger Fon & Elie Chrysostome, 2023. "On the location choices of African multinational enterprises: Do supranational economic institutions matter?," Journal of International Business Policy, Palgrave Macmillan, vol. 6(4), pages 453-490, December.
    2. Enoch Kwaw-Nimeson & Ze Tian, 2023. "Institutional Quality, Foreign Direct Investment, and Regional Integration: Empirical Evidence From CEN-SAD," SAGE Open, , vol. 13(1), pages 21582440221, January.

    More about this item

    Keywords

    Mergers and acquisitions; Africa; Economic integration; Institutions; Gravity model; Foreign direct investment;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0765. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.