In contrast to empirical evidence, recent theories of cross-border mergers and acquisitions (M&As) assume perfect knowledge transfers – from high to low productivity firms – between acquirer and target. Using the Melitz (2003) model of heterogeneous firms, we develop a matching model of...

By combining two large data sets (on international trade flows and cross-border mergers and acquisitions – M&As), we test two implications of Neary’s (2003, 2007) general oligopolistic equilibrium (GOLE) model (incorporating strategic interaction between firms in a general equilibrium...

B RAKMAN S. and G ARRETSEN H. (2003) Rethinking the "new' geographical economics, Reg. Studies 37 , 637-648. Mainstream economics and geography have largely developed separately. With some notable exceptions, this had led to a situation in which economists and geographers analyse similar issues,...