The dynamic relationship between greenfield investments, cross-border M&As, domestic investment and economic growth in Vietnam
Abstract
This paper investigates the dynamic linkages between different types of foreign direct investment (FDI), domestic investment and economic growth in Vietnam. We decompose the aggregated FDI level into its two major components: greenfield investments, and cross-border mergers and acquisitions (M&As). The empirical results reveal that greenfield investments and cross-border M&As exhibit different impacts on economic growth. While greenfield investments appear to complement domestic investment, which subsequently promotes long-run economic growth, cross-border M&As exert a significant crowd-out effect and subsequently impede growth in both the short- and the long-run. These results provide important implications for policies to attract FDI in order to stimulate sustainable growth.
Citation
Nguyen , H T , Luu , H N & Do , N H 2020 , ' The dynamic relationship between greenfield investments, cross-border M &As, domestic investment and economic growth in Vietnam ' , Economic Change and Restructuring , vol. First Online . https://doi.org/10.1007/s10644-020-09292-7
Publication
Economic Change and Restructuring
Status
Peer reviewed
ISSN
1573-9414Type
Journal article
Description
Funding: NAFOSTED (grant number 502.02-2020.09).Collections
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