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