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

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  • Hiep Ngoc Luu

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.

Suggested Citation

  • Hiep Ngoc Luu, 2016. "Greenfield investments, cross-border M&As, and economic growth in emerging countries," Economics and Business Letters, Oviedo University Press, vol. 5(3), pages 87-94.
    • Handle: RePEc:ove:journl:aid:11144
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/11144
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    2. Bayar Yilmaz, 2017. "Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries," Naše gospodarstvo/Our economy, Sciendo, vol. 63(3), pages 19-26, September.

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