The role of GDP and the macroeconomic environment in shaping international trade and agri-food sector restructuring in Europe

Mergers and acquisitions represent a key strategic tool for growth and restructuring among leading companies on a global scale.This trend is especially evident in the agri-food sector, which has experienced significant consolidation over recent decades.Consolidation processes are occurring with remarkable intensity across all stages of the agri-food supply chain, from primary production and processing to distribution and retail.The aim of this paper is to investigate the relationship between macroeconomic factors and cross-border M&A activity in the agri-food sector within European countries over the period from 1998 to 2023.More specifically, the study focuses on quantifying the impact of gross domestic product on the volume of cross-border mergers and acquisitions.Using panel data and advanced econometric models, the research examines whether countries with higher economic performance tend to engage more actively in M&A transactions.The findings demonstrate a statistically significant positive correlation between the percentage growth of GDP and the percentage increase in cross-border M&A volume, suggesting that economically strong European countries are more likely to pursue and complete mergers and acquisitions within the agri-food industry.This relationship underscores the critical role of economic growth as a driver of consolidation and expansion strategies in this sector, providing valuable insights for policymakers and business leaders aiming to understand and influence market dynamics.