Impact of Greenfield FDI versus M&amp;A on growth and domestic investment in developing Asia

Gopalan, Sasidaran; Ouyang, Alice Y.; Rajan, Ramkishen S.

doi:10.1007/s40888-017-0085-z

Cited by 12 publications

(14 citation statements)

References 33 publications

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“…M&A and Greenfield are completely different if we take into account the actual investment into the host countries (Gopalan et al, 2017). Unlike FDI via mergers and acquisitions, Greenfield investment refers to one mode of foreign entry via setting up a new venture (Muller, 2006).…”

Section: Greenfield Investment and Entrepreneurshipmentioning

confidence: 99%

The impact of Greenfield investment on domestic entrepreneurship

Chu

Nguyen

et al. 2021

J Innov Entrep

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The FDI-entrepreneurship nexus has received growing attention over the last decade. However, the empirical findings on their relationship have been inconsistent at best. This study seeks to examine how the inflows of Greenfield investment influence entrepreneurship of the host country. Using panel data from 110 countries during the period 2001-2018, we find that growing level of Greenfield investment brings detrimental impact on the level of total and opportunity-driven entrepreneurial activities in the host countries while the impact on necessity-driven entrepreneurship have been mixed. The results regarding the impact of Greenfield investment on total entrepreneurial activities and opportunity-based entrepreneurial activities are robust across different econometric settings, different time span, and different categories of control variables.

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Section: Greenfield Investment and Entrepreneurshipmentioning

confidence: 99%

The impact of Greenfield investment on domestic entrepreneurship

Chu

Nguyen

et al. 2021

J Innov Entrep

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“…Secondly, mergers and acquisitions can transfer the rent to previous owners with weak economic spillover to domestic investments and economic growth. For instance, Gopalan et al (2018) criticized mergers and acquisitions as having a short-term interest in buying domestic firms to transform ownership but limited to drive more technological and institutional development in the host countries. Using panel data of 24 Asian economies, Gopalan et al (2018) found an insignificant impact of M&A on economic growth.…”

Section: The Relationship Of Manda Domestic Investments and Economic ...mentioning

confidence: 99%

Untitled

2021

IJBESAR

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Research Articles: A research article is a regular article which aims to present new findings. 2. Letters to the Editor: A letter to the editor is a short article which aims to present new findings that require fast publication procedures. 3. Notes: A note is an article (regular or short) which aims to present rather new findings. 4. Comments: A comment is a short article that makes comments on another article already published by this journal or replies to a comment; 5. Review Articles: A review article is an article which aims to present comprehensively already existing findings.6. Lecture Notes: A lecture note is a short review article. 7. Monographs: A monograph is a thesis of one or more authors on a unique subject; apart from the standard reviewing procedures, a monograph must also be accepted from a committee of specialists appointed by the Editor. 8. Innovations: An innovation is an article which aims to present new procedures or devices. 9. Selected conference articles: Upon an agreement with a conference committee, selected papers may be published by the Journal in a special section. In this case the editor will appoint in collaboration with the conference committee guest editors.

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“…Previous empirical works (i.e., Kogut & Singh, 1988;Hennart & Park, 1993;Mayer et al, 2009;Gopalan et al, 2017) have suggested that FDI is, in fact, comprised of different components and argued that these two forms of investment may produce differential impacts on the host country due to their differences in nature and, thus, cannot perfectly be substituted for each other. According to the transaction cost theory, MNCs tend to undertake FDI in the form of greenfield investment when they seek to exploit their superior managerial abilities and technical expertise as well as intensify R&D (Chang & Rosenzweig, 2001).…”

Section: The Impact Of Fdi Compositions On the Development Of Public-service Sectorsmentioning

confidence: 99%

FDI, Corruption and Development of Public Service Sectors in ASEAN Countries

Phan¹,

Nguyen²

2020

JAFEB

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This study aims to empirically examine the effect of foreign direct investment (FDI) and corruption on the development of public-service sectors in 10 ASEAN countries. It then investigates whether this relationship is different between two FDI compositions including greenfield FDI and FDI in the form of cross-border merger and acquisitions (M&As). Using a panel database of 10 ASEAN countries during the period 1996-2015 from various sources including the World Development Indicators of the World Bank and UNCTAD, we first find that FDI strongly and positively contributes to the development of the public-service sectors in the recipient nations, except for the electricity sector. However, we show that this relationship is dependent on the type of FDI modes of entry. Specifically, while greenfield investment exerts a beneficial influence on the development of telecommunication and transportation sectors, cross-border M&A has no effect on these sectors, perhaps because of the distinct differences among three public service sectors. Finally, we found that in a highly corrupt environment, aggregate FDI might have no influence on all three public-service sectors, possibly because the two contradictory influences of the interaction terms between corruption and two FDI sub-types seem to cancel each other out.

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Impact of Greenfield FDI versus M&A on growth and domestic investment in developing Asia

Cited by 12 publications

References 33 publications

The impact of Greenfield investment on domestic entrepreneurship

The impact of Greenfield investment on domestic entrepreneurship

Untitled

FDI, Corruption and Development of Public Service Sectors in ASEAN Countries

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