Greenfield Investments, Cross-Border M&As, and Economic Growth in Emerging Countries

Economics and Business Letter, Vol 5, Issue 3, 2016

10 Pages Posted: 4 Mar 2016 Last revised: 25 Nov 2016

See all articles by Hiep Luu

Hiep Luu

University of St. Andrews

Date Written: September 1, 2016

Abstract

This paper investigates the effect of foreign direct investment (FDI) on economic growth in emerging countries through its two major entry modes: Greenfield investments and cross-border merger and acquisitions (M&As). We found that both Greenfields and M&As contribute positively to accelerate growth. Besides, emerging countries could obtain more benefits from Greenfields and M&As if the human capital levels are enhanced. We also found that while growth did not have any significant impact on Greenfields level, lower economic growth could lead to higher M&A flows.

Keywords: Cross-border M&As, Greenfield Investment, Economic Growth, Emerging Countries

JEL Classification: F21, O40, C36

Suggested Citation

Luu, Hiep, Greenfield Investments, Cross-Border M&As, and Economic Growth in Emerging Countries (September 1, 2016). Economics and Business Letter, Vol 5, Issue 3, 2016, Available at SSRN: https://ssrn.com/abstract=2742034 or http://dx.doi.org/10.2139/ssrn.2742034

Hiep Luu (Contact Author)

University of St. Andrews ( email )

The Gateway, North Haugh, St Andrews
St Andrews, Fife KY16 9SS
Great Britain

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