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Foreign Direct Investment’s Effect on Economic Growth in Developing Countries: Cross-Border Mergers and Acquisitions versus Greenfield Investments

Ekholm, Caroline LU (2017) NEKH01 20171
Department 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)
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author
Ekholm, Caroline LU
supervisor
organization
course
NEKH01 20171
year
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},
  keyword      = {FDI,Greenfield,M&A,Economic Growth,Developing Countries},
  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},
}