Effects of a Domestic Merger on Exports: The case study of a merger of Korean automakers in 1998

Author Name OHASHI Hiroshi (Faculty Fellow, RIETI) /TOYAMA Yuta (University of Tokyo)
Creation Date/NO. April 2012 12-J-008
Research Project Globalization, Innovation, and Competition Policy
Download / Links


This paper examines the economic consequences of a horizontal merger between two Korean automakers in 1998. Estimates of structural demand and supply reveal that the merger enhanced the production efficiency of the merging parties by a magnitude of 8.4%. Simulations based on the estimates indicate that while the merger increased domestic auto prices, it more than doubled the exports of the merging parties. The merger effects vary according to auto model type.

Published: Ohashi, Hiroshi, and Yuta Toyama, 2017. "The effects of domestic merger on exports: A case study of the 1998 Korean automobile industry," Journal of International Economics, Vol. 107, pp. 147-164