This paper investigates whether aggregate Foreign Direct Investment (FDI), cross-border Mergers and Acquisitions (M&A) and greenfield investments affect economic growth, based on a panel data of 53 countries over the period 1996-2006. Both causality tests and single growth equations are applied...

When a company decides to invest abroad, it can do so either through the establishment of a new firm (greenfield investment) or by acquiring an already existing firm. Although there is a vast empirical literature on the macroeconomic determinants of aggregate FDI, there are only a few studies...