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


  • Hiep Ngoc Luu School of Management University of St Andrews



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.


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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.