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types of FDI: unlike greenfield investment, M&As partly represent a rent accruing to previous owners, and do not necessarily … contribute to expanding the host country's capital stock. The model suggests that greenfield FDI has a stronger impact on growth … than M&A sales. This hypothesis is supported by our empirical results, which show that greenfield FDI enhances growth …
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In this chapter, it is analyzed how the entry mode choice of Swedish MNCs during the 1960-94 period is related to the market structure and development level of the host country. If the investing firm had previous affiliates in the host country, takeovers were preferred. The explanation is that...
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