Effects of China Join ASEAN on MNCs Cross-border M&A

Abstract

This thesis analyzes cross-border M&A activities and capital flows from the countries of the acquiring corporations to the Association of Southeast Nations (ASEAN) plus one (ASEAN plus one) using the gravity model Rapid economic growth in China is influencing the Asia-Pacific regional economy and China has become the leader of the Asia-Pacific regional economy Cross-border trade settlement between China and the ASEAN established a strategic partnership and the ASEAN member states and build the ASEAN–China Free Trade Area as of January 1 2010 The settlement also pushed for the implementation of the ASEAN Economic Community by 2015 The ASEAN plus one have huge potential for economic growth and are very attractive to international investors To measure the cross-border trade since the beginning of the strategic partnership between China and the ASEAN a time series scale and a cross-sectional scale model with two periods the pre- and post-establishment of the ASEAN-China Free Trade Area period (January 1 2002 to December 31 2009 and January 1 2010 to December 31 2011) is used This investigation based on trade theory considers the effects of information costs trade costs exchange rates financial liberalization as well as government regulations and corruption on capital inflows associated with foreign direct investment in target countries Empirical results show that financial liberalization and government regulations have a decrease significantly in influencing cross-border M&A activities following the establishment of the ASEAN–China Free Trade Area

Date of Award	2015 Jan 8
Original language	English
Supervisor	Hsin-Hong Kang (Supervisor)