Mukherjee, ArijitSenalp, Umut Erksan2024-06-122024-06-1220210965-75761467-9396https://doi.org/10.1111/roie.12510https://hdl.handle.net/20.500.14551/25064We examine whether higher productivity of a foreign firm increases the incentive for a cross border merger, which is a dominant form of foreign direct investment in recent decades. In line with the empirical evidence, we show that the relationship between productivity of a foreign firm and cross border merger is mixed. We show that the market concentration effect plays an important role in determining the relationship and provides a rationale for a generally ignored empirical evidence showing a negative relationship between firm-productivity and cross border merger. Our results hold under both Cournot and Bertrand competition.en10.1111/roie.12510info:eu-repo/semantics/openAccessHorizontal MergersInternational MergersTrade LiberalizationEntryFdiPerformanceCompetitionInvestmentExportHeterogeneityArticle294838859Q4WOS:0005858683000012-s2.0-85097412700Q2