Merger and acquisition activity as driver of spatial clustering: the spatial evolution of the Dutch banking industry, 1850-1993

Ron Boschma () and Matté Hartog ()

No 1315, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: This paper investigates the extent to which merger and acquisition activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chance of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chance of banks located there. Our findings suggest that M&A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993.

Keywords: industrial dynamics; cluster; mergers and acquisitions; banking sector; evolutionary economic geography (search for similar items in EconPapers)
JEL-codes: O18 R00 R11 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2013-09, Revised 2013-09
New Economics Papers: this item is included in nep-com, nep-cse, nep-geo, nep-his, nep-ind and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://econ.geo.uu.nl/peeg/peeg1315.pdf Version September 2013 (application/pdf)

Related works:
Journal Article: Merger and Acquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of the Dutch Banking Industry, 1850–1993 (2014)
Journal Article: Merger and Acquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of the Dutch Banking Industry, 1850–1993 (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1315

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