Foreign Direct Investment’s Effect on Economic Growth in Developing Countries: Cross-Border Mergers and Acquisitions versus Greenfield Investments
(2017) NEKH01 20171Department of Economics
- Abstract
- Foreign direct investment (FDI) occurs when a domestic corporation invests in another company in a foreign country. There are two main entry modes through which corporations can invest into the foreign country, merger and acquisitions (M&A) or greenfield investments. According to endogenous growth theory, FDI in either form should have a significant effect on economic growth in the host country. This study aims to investigate if greenfield and M&A have an effect on economic growth in developing countries. The results are estimated from using panel data methods for 32 countries over the time-period 2003-2015. The study found that the empirical evidence is inconclusive of greenfield investments and M&A impact on economic growth in developing... (More)
- Foreign direct investment (FDI) occurs when a domestic corporation invests in another company in a foreign country. There are two main entry modes through which corporations can invest into the foreign country, merger and acquisitions (M&A) or greenfield investments. According to endogenous growth theory, FDI in either form should have a significant effect on economic growth in the host country. This study aims to investigate if greenfield and M&A have an effect on economic growth in developing countries. The results are estimated from using panel data methods for 32 countries over the time-period 2003-2015. The study found that the empirical evidence is inconclusive of greenfield investments and M&A impact on economic growth in developing countries. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8924403
- author
- Ekholm, Caroline LU
- supervisor
- organization
- course
- NEKH01 20171
- year
- 2017
- type
- M2 - Bachelor Degree
- subject
- keywords
- FDI, Greenfield, M&A, Economic Growth, Developing Countries
- language
- English
- id
- 8924403
- date added to LUP
- 2017-09-12 11:55:41
- date last changed
- 2017-09-12 11:55:41
@misc{8924403, abstract = {{Foreign direct investment (FDI) occurs when a domestic corporation invests in another company in a foreign country. There are two main entry modes through which corporations can invest into the foreign country, merger and acquisitions (M&A) or greenfield investments. According to endogenous growth theory, FDI in either form should have a significant effect on economic growth in the host country. This study aims to investigate if greenfield and M&A have an effect on economic growth in developing countries. The results are estimated from using panel data methods for 32 countries over the time-period 2003-2015. The study found that the empirical evidence is inconclusive of greenfield investments and M&A impact on economic growth in developing countries.}}, author = {{Ekholm, Caroline}}, language = {{eng}}, note = {{Student Paper}}, title = {{Foreign Direct Investment’s Effect on Economic Growth in Developing Countries: Cross-Border Mergers and Acquisitions versus Greenfield Investments}}, year = {{2017}}, }