IDEAS home Printed from https://ideas.repec.org/p/ecj/ac2003/22.html
   My bibliography  Save this paper

U.S. Greenfield Investments and M&A location: impact of American continental integration and Insider vs. Outsider position

Author

Listed:
  • Bertrand, Olivier

    (University of Paris 1)

  • Nicole Madariaga

Abstract

This study examines the effects of economic integration on Greenfield Investments and cross-border Acquisitions locations. We use panel data on U.S. FDI in NAFTA and MERCOSUR members from 1989 to 1998. Economic integration is captured through tariff barriers and dummy variables. We pool data to distinguish between both agreements. We control for traditional macroeconomic determinants. It is found that economic integration certainly played a major role on U.S. firmsÕ location patterns. The U.S. position regarding the two agreements Ð insider vs. outsider- seemed to matter. Moreover, both our empirical study and our theoretical model underline the relevance of separating entry modes.

Suggested Citation

  • Bertrand, Olivier & Nicole Madariaga, 2003. "U.S. Greenfield Investments and M&A location: impact of American continental integration and Insider vs. Outsider position," Royal Economic Society Annual Conference 2003 22, Royal Economic Society.
  • Handle: RePEc:ecj:ac2003:22
    as

    Download full text from publisher

    File URL: http://repec.org/res2003/Bertrand.pdf
    File Function: full text
    Download Restriction: no

    More about this item

    Keywords

    FDI; integration; location; mode of entry;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:ac2003:22. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/resssea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.