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International mergers and productivity effects in the globalization process

More and more countries are deregulating their product markets and allowing foreign direct investment. However, there is concern among these countries that foreign acquisitions of domestic companies, in contrast to foreign new investments, may impair competition in domestic product markets. This could harm consumers, lead to closure of domestic production and thereby reduce the number of domestic jobs. The research in this subproject has among other things analyzed how foreign acquisitions affect efficiency in the domestic product markets.

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