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We explore the effect of foreign direct investment on economic growth in developing countries, distinguishing between mergers and acquisitions ("M&As") and "greenfield" investment. A simple model captures the key difference between the two types of FDI: unlike greenfield investment, M&As partly...
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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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