U.S. Greenfield Investments and M&A location: impact of American continental integration and Insider vs. Outsider position

Olivier Bertrand and Nicole Madariaga
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Olivier Bertrand: University of Paris 1

No 22, Royal Economic Society Annual Conference 2003 from Royal Economic Society

Abstract: This study examines the effects of economic integration on Greenfield Investments and cross-border Acquisitions locations. We use panel data on U.S. FDI in NAFTA and MERCOSUR members from 1989 to 1998. Economic integration is captured through tariff barriers and dummy variables. We pool data to distinguish between both agreements. We control for traditional macroeconomic determinants. It is found that economic integration certainly played a major role on U.S. firmsÕ location patterns. The U.S. position regarding the two agreements Ð insider vs. outsider- seemed to matter. Moreover, both our empirical study and our theoretical model underline the relevance of separating entry modes.

Keywords: FDI; integration; location; mode of entry (search for similar items in EconPapers)
JEL-codes: F15 F23 L10 L16 R12 (search for similar items in EconPapers)
Date: 2003-06-04
New Economics Papers: this item is included in nep-geo and nep-ifn
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Persistent link: https://EconPapers.repec.org/RePEc:ecj:ac2003:22

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