RATE OF SPECIALIZATION OF PRODUCTION SECTORS AND SECTORS OF ECONOMIC SERVICES AND ITS IMPACT ON THE VOLUME OF CROSS-BORDER MERGERS AND ACQUISITIONS IN THE SOURCE COUNTRIES OF THE EUROPEAN AREA

Abstract

The main goal of the paper is to quantify the impact of the degree of specialization calculated on the basis of the Michael index on the volume of cross-border mergers and acquisitions in the source countries of the European area in the period 1998-2015. The paper focuses on the degree of specialization (Michael's index), which is defined as the difference between the share of the surveyed commodity group in total national exports and the share of the surveyed commodity group in national imports. In the period 1998-2015, countries such as Belgium, Cyprus, Finland, and Greece achieved an average level of specialization in the manufacturing and services sectors, with a gradually improving business environment.