Greenfield investments, cross-border M&As, and economic growth in emerging countries

Authors

  • Hiep Ngoc Luu School of Management University of St Andrews

DOI:

https://doi.org/10.17811/ebl.5.3.2016.87-94

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 mergers and acquisitions (M&As). We found that both Greenfields and M&As contribute positively to accelerating growth. In addition, emerging countries could obtain more benefits from Greenfields and M&As if the human capital levels were enhanced. We also found that while growth did not have any significant impact on Greenfield investment levels, lower economic growth could lead to higher M&A flows.

References

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Published

05-10-2016

How to Cite

Luu, H. N. (2016). Greenfield investments, cross-border M&As, and economic growth in emerging countries. Economics and Business Letters, 5(3), 87–94. https://doi.org/10.17811/ebl.5.3.2016.87-94

Issue

Section

Articles